nick8086 Posted March 11, 2019 Share Posted March 11, 2019 (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 $$ Edited March 11, 2019 by nick8086 (see edit history) Link to comment Share on other sites More sharing options...
Guest Posted March 11, 2019 Share Posted March 11, 2019 Our wills set up a trust and we have named the person who is to be the sole trustee. There are three pages of words so that no one can cause the trustee any legal problems. Of course every jurisdiction is different. Link to comment Share on other sites More sharing options...
RansomEli Posted March 11, 2019 Share Posted March 11, 2019 Nick, Trusts are a useful and valuable tool to avoid probate. The ones I have been involved with have achieved their purpose: minimizing estate costs and legal fees while maximizing the $$$ 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. 5 Link to comment Share on other sites More sharing options...
Marty Roth Posted March 11, 2019 Share Posted March 11, 2019 (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 May 13, 2019 by Marty Roth typo, and additional note (see edit history) Link to comment Share on other sites More sharing options...
edinmass Posted March 12, 2019 Share Posted March 12, 2019 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. 3 Link to comment Share on other sites More sharing options...
Robert Street Posted March 12, 2019 Share Posted March 12, 2019 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 1 Link to comment Share on other sites More sharing options...
ejboyd5 Posted March 12, 2019 Share Posted March 12, 2019 Nick needs a new lawyer. 1 Link to comment Share on other sites More sharing options...
Zimm63 Posted March 12, 2019 Share Posted March 12, 2019 Trusts are useful in keeping minors and irresponsible adult children from doing very stupid things with an interitance. You need a better advisor. 1 Link to comment Share on other sites More sharing options...
caddyshack Posted March 12, 2019 Share Posted March 12, 2019 Make it a revocable trust. You might change your mind about things later. And, get an excellent estate attorney. Link to comment Share on other sites More sharing options...
alsancle Posted March 12, 2019 Share Posted March 12, 2019 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. 2 Link to comment Share on other sites More sharing options...
JACK M Posted March 12, 2019 Share Posted March 12, 2019 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. Link to comment Share on other sites More sharing options...
ply33 Posted March 12, 2019 Share Posted March 12, 2019 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. 2 Link to comment Share on other sites More sharing options...
Bhigdog Posted March 12, 2019 Share Posted March 12, 2019 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 2 2 Link to comment Share on other sites More sharing options...
nick8086 Posted March 13, 2019 Author Share Posted March 13, 2019 (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... Edited March 13, 2019 by nick8086 (see edit history) Link to comment Share on other sites More sharing options...
Robert G. Smits Posted March 13, 2019 Share Posted March 13, 2019 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. 1 1 Link to comment Share on other sites More sharing options...
nick8086 Posted March 13, 2019 Author Share Posted March 13, 2019 (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.. Edited March 13, 2019 by nick8086 (see edit history) 1 Link to comment Share on other sites More sharing options...
mercer09 Posted March 13, 2019 Share Posted March 13, 2019 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. Link to comment Share on other sites More sharing options...
ejboyd5 Posted March 13, 2019 Share Posted March 13, 2019 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. 1 Link to comment Share on other sites More sharing options...
nick8086 Posted March 14, 2019 Author Share Posted March 14, 2019 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.. Link to comment Share on other sites More sharing options...
alsancle Posted March 14, 2019 Share Posted March 14, 2019 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! Link to comment Share on other sites More sharing options...
Robert Street Posted March 14, 2019 Share Posted March 14, 2019 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 Link to comment Share on other sites More sharing options...
CarNucopia Posted March 14, 2019 Share Posted March 14, 2019 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. Link to comment Share on other sites More sharing options...
60FlatTop Posted March 14, 2019 Share Posted March 14, 2019 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. 1 Link to comment Share on other sites More sharing options...
nick8086 Posted May 8, 2019 Author Share Posted May 8, 2019 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.. Link to comment Share on other sites More sharing options...
nick8086 Posted May 12, 2019 Author Share Posted May 12, 2019 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 .. Link to comment Share on other sites More sharing options...
John_Mereness Posted May 12, 2019 Share Posted May 12, 2019 On 3/12/2019 at 6:57 AM, 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. Trusts work fine and I would never blink an eye at Real Estate or ... in them, but cars are something that I think probably should be turned into cash for the trust. Link to comment Share on other sites More sharing options...
nick8086 Posted May 16, 2019 Author Share Posted May 16, 2019 (edited) Why turn a car into cash? in a trust If it is yours.. It may be a car you can never afford to buy. It cost you nothing to own.. Just the car insurance.. Cars or a house.. you get an inheritance step up basis.. How the Stepped-Up Basis Works For assets transferred by inheritance, a preference does exist. The heir receives a stepped-up basis, which is usually equal to the fair market value on the date of the decedent’s death. This can be an enormous tax benefit. Imagine that your uncle bought stock forty years ago with a basis of $5,000. The stock is worth $80,000 on the day your uncle passes away, and you inherit the stock. Your basis in the asset will be $80,000, and the built-in gain of $75,000 will never be taxed. If you don’t understand how the stepped-up basis works, you could potentially make a big mistake by gifting capital assets to your future heirs. If the asset has appreciated, you would generally be much better off bequeathing the asset in your will than giving it as a gift because of the stepped-up basis loophole. If you want to use the gift tax . This is a great way to pass on money to the kids.. You pay no tax or inheritance Tax.. Your kids do not have to report it as income.. So no taxes.. You have to be alive to do this.. I get some cash from my mom every year.. So instead of getting 200K and having to pay taxes on it after she passes away . I get a few bucks every year and owe nothing. No taxes.. This is the best loop hole.. If you have 999K in stocks and your 90 years old. You can gift 15K to any one.. So you can give money to the aaca and bob, john and Jake.. That is 60K to gift a year.. No state or fed tax to pay...If you pass and give to the aaca it has a high tax. they are not next of kin.. Do cash only - do not do a house or a car.. That will not make the kids happy.. Edited May 16, 2019 by nick8086 (see edit history) 1 Link to comment Share on other sites More sharing options...
Curti Posted May 16, 2019 Share Posted May 16, 2019 Well, maybe I am self centered. I payed to bury both of my parents. I basically inherited nothing. Over my lifetime i have built up quite a collection of cars , signs, gas pumps, memorabilia etc. and a car parts business that does very well. Let the kids work it out. 1 Link to comment Share on other sites More sharing options...
mercer09 Posted May 16, 2019 Share Posted May 16, 2019 So instead of getting 200K and having to pay taxes on it after she passes away . I get a few bucks every year and owe nothing. No taxes.. have no idea what youre talking about, but your Mom can pass 5.5 million to each child wo any tax owed. seems you have a lot of reading to do................! Link to comment Share on other sites More sharing options...
Grimy Posted May 16, 2019 Share Posted May 16, 2019 Further, when there's a valuable collector car in an estate, it's value is also stepped up (like real estate) to its value as of the date of the owner's death. So a car purchased years ago for $10K, restored over the years, now worth $200K, gets a stepped-up basis to today's $200K with no need to worry about capital gains on its appreciation--or logging all the receipts. Works best if the car is jointly owned and in a community property state. Gross oversimplification, but that's the basic idea. Link to comment Share on other sites More sharing options...
KongaMan Posted May 16, 2019 Share Posted May 16, 2019 On 5/7/2019 at 10:02 PM, nick8086 said: It is done.. Bob will work on the cars.. More likely Bob will sell the cars -- which will likely happen before you're cold. There may be sound financial reasons for leaving cars in the estate in some cases, but cash is easier to distribute, easier to manage, and -- for most beneficiaries -- much more desirable than "Dad's old cars". Link to comment Share on other sites More sharing options...
Frank DuVal Posted May 17, 2019 Share Posted May 17, 2019 You guys are confusing Federal Estate tax with State estate tax. Having worked on estates in North Carolina, Maryland and Virginia, I'm staying here! Those states have weird estate rules for their taxation. Virginia goes by the Federal rules. If no Federal estate tax is owed, Virginia does not get a cut either. There is a small probate tax, a tenth of a percent. People of my age and older should think about these rules before moving to avoid other taxes...... Get the full picture. Including knowing if the new state is a lockdown state where joint accounts are frozen until an inventory is made and approved by the clerk of court. A surviving spouse needs to file for a Year's Allowance to continue to pay their bills. Link to comment Share on other sites More sharing options...
nick8086 Posted May 17, 2019 Author Share Posted May 17, 2019 What about this : Transfer-on-death deeds for real estate. You can leave Nebraska real estate with a transfer-on-death deed. You'll need to prepare a new deed, naming a beneficiary, and then record it with the local land records office. The TOD beneficiary doesn't have any rights to the property until after your death. Link to comment Share on other sites More sharing options...
nick8086 Posted May 17, 2019 Author Share Posted May 17, 2019 (edited) 12 hours ago, mercer09 said: So instead of getting 200K and having to pay taxes on it after she passes away . I get a few bucks every year and owe nothing. No taxes.. have no idea what youre talking about, but your Mom can pass 5.5 million to each child wo any tax owed. seems you have a lot of reading to do................! I talked to my attorney It make no sense to wait to give.. Yes you can pass 11 million to the kids.. But if they are 70 and have wealth. It do not help them out.. You do not need it.. The best time to help the kid out is in their 30's to help with a house and diapers.. My point is you can pass cash and no one has to pay taxes on it... or report it as income.. It works for me no money to the government.. Do not email aoc. It all about estate planning moving wealth from your estate to some else.. and not paying to much in taxes.. Mom can pass 5.5 million to each child wo any tax owed. Nebraska still has an inheritance tax rates are as follows: Immediate relatives are subject to an inheritance tax of 1%. Remote relatives are subject to an inheritance tax of 13%. Other transferees are subject to an inheritance tax of 18%. You still have to pay... Edited May 17, 2019 by nick8086 (see edit history) Link to comment Share on other sites More sharing options...
Frank DuVal Posted May 17, 2019 Share Posted May 17, 2019 Copied from the Virginia Department of Taxation: Today, Virginia no longer has an estate tax* or inheritance tax. Prior to July 1, 2007, Virginia had an estate tax that was equal to the federal credit for state death taxes. With the elimination of the federal credit, the Virginia estate tax was effectively repealed. Move here, bring your money, leave it to whomever you want! Oh if was only that easy!😉 Link to comment Share on other sites More sharing options...
mercer09 Posted May 17, 2019 Share Posted May 17, 2019 Oh if was only that easy!😉 It sure can be, if you dont over think it. I personally believe in metals, buried in the ground. The kids can use the metal detectors to figure it out. 1 Link to comment Share on other sites More sharing options...
nick8086 Posted May 18, 2019 Author Share Posted May 18, 2019 11 hours ago, mercer09 said: Oh if was only that easy!😉 It sure can be, if you dont over think it. I personally believe in metals, buried in the ground. The kids can use the metal detectors to figure it out. Ok : https://jalopnik.com/the-true-story-of-how-a-ferrari-ended-up-buried-in-some-5872514 Link to comment Share on other sites More sharing options...
nick8086 Posted May 18, 2019 Author Share Posted May 18, 2019 (edited) I am still trying to figure out the giving an asset as a beneficiary..In 2013 Nebraska let you set up a beneficiary on your stuff.. No probate,. not sure how the tax stuff works.. I know if you have 50K in the bank.. and you are a beneficiary . you just show a death cert and it is yours.. Know one gives an answer do you have to report it or pay taxes on it...??? Before I spent 200 to find out what is a beneficiary cost basis would be.. Your dealing with beneficiary vs inherit stuff.. I here story of guys that divorce and never change the beneficiary on the stuff and the family get nothing.. just the ex... Edited May 18, 2019 by nick8086 (see edit history) Link to comment Share on other sites More sharing options...
nick8086 Posted May 18, 2019 Author Share Posted May 18, 2019 The funny thing I talk to a 40 year old and an a 69 year old person and other guy in the family and no one has a will... It just make me upset that they can not spend 300 to save the estate 10K.. Link to comment Share on other sites More sharing options...
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