Why do I like/not like trusts?
Trust documents are labyrinthine: hard to understand. Wills say give this.
In a trust, the house takes two deeds; in probate only one, and sometimes none.
In a trust, it takes opening two bank accounts; in probate often two, but not always.
In a trust, you do the work even if the assets end up gone; in probate you do only what needs doing.
In a trust, you do the work; in probate, your kids do it.
In a trust, if there is a dispute over a bill, your assets are at risk for a longer time (9 mos vs 3) but may present the creditor more hurdles; in probate you can cut off creditors more quickly.
Neither is inherently faster than the other: it all depends on the kids.
Trusts do not have special needs safe harbors; as a practical matter, probate can better protect the surviving spouse in a Medicaid setting.
Why don’t I like trusts? Misused, they are more complex than necessary to do the job. Why do I like trusts? Used properly they can provide protections in complex family settings.
:- Doug.
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