- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Spinoff: Why are everyday people so afraid of probate?
Posted on 1/24/23 at 11:30 am
Posted on 1/24/23 at 11:30 am
The discussion about the account registration, combined with a discussion I had with a co-worker the other day, causes me to ask this.
It seems like some people are hell-bent on doing whatever they can to avoid probate. Setting up living trusts, wanting to make gifts before they die even if that is terrible from a tax point of view, etc.
All to "avoid probate".
I know there are court costs, but there are also costs of setting up all these avoidance mechanisms as well.
I can understand if you have a complicated estate, a high value estate, etc.
But I can't tell you how many times I've seen a living trusts where the assets are the house, a 5K checking account and a 30K investment account.
I've dealt with a number of estates here in LA over the years, and again, unless the estate was super complex or there were some well known family drama, probate is fairly simple and easy.
Is that that complicated in other states?
It seems like some people are hell-bent on doing whatever they can to avoid probate. Setting up living trusts, wanting to make gifts before they die even if that is terrible from a tax point of view, etc.
All to "avoid probate".
I know there are court costs, but there are also costs of setting up all these avoidance mechanisms as well.
I can understand if you have a complicated estate, a high value estate, etc.
But I can't tell you how many times I've seen a living trusts where the assets are the house, a 5K checking account and a 30K investment account.
I've dealt with a number of estates here in LA over the years, and again, unless the estate was super complex or there were some well known family drama, probate is fairly simple and easy.
Is that that complicated in other states?
12
Posted on 1/24/23 at 11:56 am to LSUFanHouston
To be less of a burden to the people that will need to make the decisions? Also to have more control of the release, while also seeing the joy of what can be significant sums of money to the recipient?
Posted on 1/24/23 at 11:59 am to LSUFanHouston
My dad set up a trust, not to avoid probate, but because someone convinced him that in order for Medicaid/Medicare? to pay for his/my mom's long term stay in a nursing home, all of their assets would have be exhausted,
therefore by putting larger assets such as their house in a trust, it could be passed his heirs (me/my sister).
Does this make sense? I have no idea, but it may or may not be the answer for some of the folks you're asking about.
therefore by putting larger assets such as their house in a trust, it could be passed his heirs (me/my sister).
Does this make sense? I have no idea, but it may or may not be the answer for some of the folks you're asking about.
Posted on 1/24/23 at 12:19 pm to LSUFanHouston
In Louisiana, there are exceptions if you are talking about people who are very wealthy and/or involved in complicated financial dealings.
But for the vast majority of people, the avoid probate/living trust thing is unnecessary and causes problems later.
But for the vast majority of people, the avoid probate/living trust thing is unnecessary and causes problems later.
Posted on 1/24/23 at 12:24 pm to Grassy1
quote:
My dad set up a trust, not to avoid probate, but because someone convinced him that in order for Medicaid/Medicare? to pay for his/my mom's long term stay in a nursing home, all of their assets would have be exhausted,
therefore by putting larger assets such as their house in a trust, it could be passed his heirs (me/my sister).
Does this make sense? I have no idea, but it may or may not be the answer for some of the folks you're asking about.
This is definitely a thing. My grandmother went into a nursing home and the cost was covered by medicare/medicaid putting a lean on her land and then selling it to pay the bills when she passed.
if she had gifted the land before going to the nursing home or put it in a trust, it wouldnt have been touched.
This post was edited on 1/24/23 at 12:25 pm
Posted on 1/24/23 at 12:32 pm to Grassy1
quote:
My dad set up a trust, not to avoid probate, but because someone convinced him
I find that the majority of the time it's because of this. You "need" this to avoid being a terrible burden - and that's an extra $1,600 beyond your simple will.
My own dad has asked me this 50x. It's like "dude, you have some IRA's and a house, chill out." But all the articles and the news and the companies that sell estate plans say it's a good idea.
Posted on 1/24/23 at 12:37 pm to notsince98
quote:
if she had gifted the land before going to the nursing home or put it in a trust, it wouldnt have been touched.
If you transfer it within 5 years, there is a penalty.
As far as trusts for Medicaid issues, yes, this is a thing, but this is beyond simply avoiding probate. Living trusts do not qualify as a Medicaid trust because a living trust is revocable.
It has to be into a irrevocable trust for it to work for Medicaid and again, 5 year rule.
Posted on 1/24/23 at 3:56 pm to LSUFanHouston
It depends on the state. NJ is easy peasy. NY can be a pain in the arse. Florida can be expensive. Also factor in time lag of the process and attorney costs.
Posted on 1/24/23 at 3:59 pm to LSUFanHouston
It can be very expensive and very long. State dependent. I advise all clients to set up assets to avoid probate
Posted on 1/24/23 at 4:01 pm to notsince98
its three years after he transferred the assets
Posted on 1/24/23 at 5:08 pm to TheOcean
quote:
It can be very expensive and very long. State dependent. I advise all clients to set up assets to avoid probate
You do what you can, where you can, but the majority of people in LA that are afraid of probate don’t even have a damn will - in my experience.
Posted on 1/24/23 at 5:09 pm to TigerintheNO
quote:
its three years after he transferred the assets
I believe it’s a 5 year look back.
Posted on 1/24/23 at 5:56 pm to slackster
depends on the state, Louisiana is 3 years
Posted on 1/24/23 at 9:24 pm to LSUFanHouston
I agree.
You ask why.
It is because they get sold a bill of goods from the “how to avoid probate “ people that turn out to be more complicated and expensive than going through probate.
Some people need to set up a trust but the great majority of people who inquire about them don’t need them.
You ask why.
It is because they get sold a bill of goods from the “how to avoid probate “ people that turn out to be more complicated and expensive than going through probate.
Some people need to set up a trust but the great majority of people who inquire about them don’t need them.
Posted on 1/24/23 at 10:50 pm to TigerintheNO
Posted on 1/24/23 at 11:14 pm to geauxpurple
quote:
You ask why. It is because they get sold a bill of goods from the “how to avoid probate “ people that turn out to be more complicated and expensive than going through probate.
True. People are worried sick about probate because ads from living trust scammers use it as a bogeyman. “Don’t burden your loved ones with probate.” But the people who are worried really have no idea what it is or why it is to be avoided. In Louisiana, it’s usually no big deal.
Posted on 1/25/23 at 5:28 am to LSUFanHouston
Setting it up before death makes your children or beneficiaries not have as much to potentially fight over when you pass
Posted on 1/25/23 at 5:51 am to Upperdecker
They'll still fight over it.
Posted on 1/25/23 at 6:34 am to LSUFanHouston
If you have minor children, a trust is helpful to make sure they are taken care of if both parents pass or if parents are divorced. Even if probate moves relatively quickly, a trust is better for continuity of financial care for the kids.
Posted on 1/25/23 at 8:32 am to iknowmorethanyou
quote:
They'll still fight over it.
And this is why people use them. They KNOW the personalities and the trust finalizes the decision. (Fight was going happen regardless.)
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News