nick8086

Estate Planning

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Posted (edited)

I did a new will.. and trust..

 

I not done yet..

 

The lawyer would not let me appoint bob to look after the cars..

 

If it was in a trust .. the trust was in control..

 

Let me know why i can not tell the trust to use a guy in the trust?

 

I had to do this this because  I  have minors..

 

If you set up a trust... walk away - it is a big joke to the estate...

 

It is a sh#$t load  of waste of money  to the estate.. They spend money  and have no common sense..  They are lawyers..  not car collectors..

 

A trust only works.. If you have an estate over 11 million $$ 

 

 

 

Edited by nick8086 (see edit history)

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Our wills set up a trust and we have named the person who is to be the sole trustee.  There are three pages of words so that no one can cause the trustee any legal problems.

Of course every jurisdiction is different.

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Nick, 

 

Trusts are a useful and valuable tool to avoid probate. The ones  I have been involved with have achieved their purpose: minimizing estate costs and legal fees while maximizing the $$$ going to heirs.

 

Your comments show that your lawyer did not (1) sufficiently explain wills/trusts/estates to you and (2) figure out a way to implement your wishes. Get someone who cares about you, not your legal fees. 

 

The concept of a trustee involves someone who is in total control of your estate. Someone you absolutely trust to do the right thing. You should name as trustee someone who will ask Bob for advice. 

 

Please don't give up on the idea of a living trust. 

 

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Posted (edited)

Nick,

 

RansomEli is correct !

 

Trusts work if properly set up.

They AVOID PROBATE

They may minimize Inheritance taxes.

They typically eliminate Attorney Fees related to asset distribution and Probate

They minimize any delay opon distribution following death of the second spouse (depending on how set-up)

You identify the Trustee, and Successor Trustees who have absolute control only to follow YOUR instructions

 

IMPORTANT !!  --  DO NOT APPOINT THE LAWYER AS YOUR TRUSTEE !!

Edited by Marty Roth
typo, and additional note (see edit history)

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Trusts work fine.......BUT ......they can be expensive when the trustee and advisors take big bites out of the capital. Make them simple, so they are easy to manage. Leaving in lots of complicated assets that require time, upkeep, and attention is a sure way to draw down on the assets. Most likely your family really doesn't want cars.......or any of your other collectibles. Liquidate them and just leave the minimum amount of tangibles in the trust, the rest should just be cash and a portfolio. From 25 years and two different trusts, my two cents. MAKE IT SIMPLE.

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6 minutes ago, edinmass said:

Trusts work fine.......BUT ......they can be expensive when the trustee and advisors take big bites out of the capital. Make them simple, so they are easy to manage. Leaving in lots of complicated assets that require time, upkeep, and attention is a sure way to draw down on the assets. Most likely your family really doesn't want cars.......or any of your other collectibles. Liquidate them and just leave the minimum amount of tangibles in the trust, the rest should just be cash and a portfolio. From 25 years and two different trusts, my two cents. MAKE IT SIMPLE.

 

Agreed as my daughter doesn’t want the cars!  I have started “thinning the herd”

robert

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Trusts are useful in keeping minors and irresponsible adult children from doing very stupid things with an interitance.

 

You need a better advisor.  

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Make it a revocable trust. You might change your mind about things later.

And, get an excellent estate attorney.

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So why would anyone with an estate under the 5 million minimum Federal exemption do anything?   Also,  what is more expensive?  Capital gains or the estate tax?   Because cars passed through an estate may need to pay an estate tax but get the potential capital gains wiped out.

 

Also,  from my observation,  at least 50 percent of the people regret (for varying reasons) the machinations they put in place to avoid estate taxes.  Without a very sizable estate (i.e. more than 10 million bucks) you are wasting time, money and aggravation.

 

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I have my estate in a trust.

Avoids probate making things easier for the daughter in charge of things when I am gone.

My portfolio has a payable on death designation so technically its not part of the estate. It splits equally to my four kids immediately on my death and the cost basis goes to that day as well.

I am WAY below the 5 mill exemption, so no taxes.

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4 hours ago, alsancle said:

So why would anyone with an estate under the 5 million minimum Federal exemption do anything?   Also,  what is more expensive?  Capital gains or the estate tax?  

 

It is not the state or federal estate tax(es) you are trying to avoid. Most of us aren't rich enough for that to be a problem. You are trying to avoid going through probate which can be time consuming and can be costly. In some (many?) states probate fees are a percentage of the total estate assets. So even if you don't have a huge net value because of liabilities you can still get hit with high fees.

 

FWIW, my parents didn't set up a trust. The estate was not large enough to worry about state or federal estate taxes but it still took over a year and a bunch of money to lawyers to get things through probate. Make it easy on your heirs, setup a revocable trust.

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Anyone who is getting financial or estate planning advice HERE, and acting on it, should first visit a competent mental health expert to get their head examined............Bob

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Posted (edited)

I do not need a new lawyer.. I use three of them.. It is  hard to tell them how to work on a rare car..  Most shops do not own a drum puller..

 

The lawyer just write the document.. The trust dept.. I have concerns about.. The may have a young kid run you estate...

 

With old cars - you have to take care of them..  Start them.. put air in the tires, use jack stands.. etc..

 

bait for mice..

 

Here is a picture of a car tire I got from the Trust my dad set up..  The car had three flat tires...

 

My father Trust was charged for gutter cleaning.. They did the house but did not do the garage.. 

 

Here is what back up of water... does...

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Edited by nick8086 (see edit history)

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I agree with Bhigdog!!  If we were mentally competent we would’t have all these cars. Of course we wouldn’t have all this fun or friend’s either!!!  The best way to beat the inheritance tax ceiling is to be in the old car hobby. 

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Posted (edited)

Lot a people ask me.. Why do you  have all those  cars? Why not just sell them...

 

I do not have a great answer to tell them..

 

Here is a part I just got chromed..

 

 

IMG_6908.JPG

Edited by nick8086 (see edit history)
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So why would anyone with an estate under the 5 million minimum Federal exemption do anything?   Also,  what is more expensive?  Capital gains or the estate tax?   Because cars passed through an estate may need to pay an estate tax but get the potential capital gains wiped out.

 

Also,  from my observation,  at least 50 percent of the people regret (for varying reasons) the machinations they put in place to avoid estate taxes.  Without a very sizable estate (i.e. more than 10 million bucks) you are wasting time, money and aggravation

 

 

 

spot on!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

people cause their own problems in life..................... avoid the tax man.

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I'm having difficulty following Nick's train of thought.  I suspect his attorney is having difficulty as well.  A failure in communication between  client and counsel  is next to impossible to resolve. 

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I am not looking to avoid taxes.. I just want someone to take care of my stuff..  My old cars...

 

I going thru a Trust estate now ... I do not like a few things..

 

 

 

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8 hours ago, nick8086 said:

I am not looking to avoid taxes.. I just want someone to take care of my stuff..  My old cars...

 

You need a collection manager.  I know  a good one!

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8 hours ago, nick8086 said:

I am not looking to avoid taxes.. I just want someone to take care of my stuff..  My old cars...

I can’t help you as I have conditioned space. I am “thinning” also

Robert

 

 

 

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There are few things that are more needlessly expensive then cheap legal advice. Having both planned my estate and settled family members', I'm glad I had an experts help.

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The cars are my toys, a small percentage of what would be an estate. I don't think I'd like it if it was the other way around.

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It is done.. Bob will work on the cars..

 

My kids will be added to the car titles.. 

 

Did not look in to the tax question..  I gave everything to my wife .. but the cars will be owned by everyone in the family..

 

If i sell them. this will not happen..

 

 

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If you have 20 cars or more.. Look at the car titles and clean them up.. I got 11 car and four did not match..

 

I also set up a place to store them.. and how to pay for it.. This is a  to help my kids out...

 

You have to spell everything out in your trust or will or most lawyers just do a honey do will ..

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