Living Trust?

[JoeW]

About 5 years ago, my wife and I had a Living trust drawn up through a program her union offered. Still, it cost us $800 to have it done. I was talking to my mother last night. She has found someone who says they'll do it for her for $50. Apparently this person is fresh out of law school. I say this sounds too good to be true. My mother is 78 years old and I think someone's trying to take advantage of her age. What do you think? Has anyone ever seen anything like this? I want her to have a living trust, but she's not willing to spend $500 - $1000 to have it done. Since I'm the executor of her will, I'm wondering whether I should pay to have it done.

 

[mellowyellow]

Re: Living Trust?

never go cheap on lawyers, mechanics or babysitters.... not worth saving a few $ IMO...

 

[LubeDude]

Re: Living Trust?

Be VERY carefull about livivg trusts! I work for a Lawyer, and he handles a lot of estates. He says there are a lot more living trusts out there that are not worth the powder to blow them to He*l, than the ones that are good! You need a lawyer that has been around for awhile and handled many estates and understands the estate laws of your state to the "T"! You would be money ahead to have a good lawyer handle your mothers estate, you may save thousands in the long run!! <br /><br />My 2 Cents!!

 

[salty87]

Re: Living Trust?

the guy isn't necessarily shady but you get what you pay for. this isn't a corner i would cut.<br /><br />what he doesn't know will end up costing YOU and your family.

 

[Bob in Calif.]

Re: Living Trust?

JoeW.........<br /><br />Getting a living trust done for $50.00, is like buying a "genuine" Rolex watch in a K-mart parking lot, for $20.00.<br /><br />It could be done for the $50.00, but I don't see how that could be " all inclusive." The notary fees alone would eat up a good part of the $50.00.<br /><br />My mother passed away two years ago this month and was my last relitive on both sides of my family. She had a living trust done about 10 years before her passing. There has been a lot to do on my end, but without the trust, it would been a real mess.<br /><br />We co-owned the house she lived in, until the living trust was written up. I did a quit claim deed on my 1/2 of the house and deeded it to her, which she placed in the trust. Now I can sell the house and get 100% of the sale net, tax free, due to the new tax laws.<br /><br />Mostly all of the other fincial items were jointly held as, either/or, which worked out very well. <br /><br />This was extra important for me, as I have no brothers, sisters, aunts or uncles, etc. My wife and kids not withstanding.<br /><br />It cost $500.00 to do the complete trust, which 12 years ago, was actually a good deal, for the amount of work done.<br /><br />If your mother balks at the $800.00 cost, tell you will pay for it. It will save you multiple headaches and expenses years from now.<br /><br /> ...Bob in Calif...

 

[neumanns]

Re: Living Trust?

There are basic fill in the blank forms that can be done but do not take into account all things that should be considered. Pass on this one.<br /><br />All things legal that can be worked out by a competent individual before death occurs will be an abosulute blessing in the end. Once the courts and family gets involved it can be an absolute nightmare. <br /><br />On a side note most individuals can see where potential problems lie within the family but the ones you need to be wary of is your dear sweet ----- that your just sure will see things sensably.<br /><br />Also anyone reading this with the possable exception of RyanT should have a will if you do not already have one as things work nothing like one would expect in the unexpected death of a loved one or for your loved ones.

 

[Jack Shellac]

Re: Living Trust?

My wife and I did a living trust two years ago with a lawyer who is highly regarded and reputable. It cost us $1000 for both of us. It wasn't a 30 minute deal, as we met several times and talked on the phone several times before he was ready to prepare the final document. Was it worth it? It was to me since I feel comfortable with what we have.

 

[aspeck]

Re: Living Trust?

Living trusts aren't for everyone - and there are a lot of lawyers out there to take advantage of gullible people. One hoodwinked my great uncle into putting his property into an irrivocable living trust. It was such a shame, that was all the man owned. There was no tax advantage, just income for the lawyer. Then when my uncle gave me POA to look into his matters the lawyer would not accept it and would not turn over any information about the trust (uncle had lost his paperwork, I learned about it from the lawyer's reciept - $2,000)!<br /><br />My father's living trust was a great savings in inheritance tax, but my mother hates it now - says she wants to just give us the money now, she doesn't want the income. But, that isn't the way it works, and the principle can't be touched till dear old mom dies, which we don't want to happen for a long time.<br /><br />My brothers and I don't care about the $ and are glad mom can have the additional income, but she certainly doesn't like it.<br /><br />With that said, just remember, a lawyer or financial adviser will paint a pretty picture because it is added income for them. However, unless you have amassed a sizeable amount of wealth, you are probably better off to learn about the different estate planning options that might be cheaper and easier to put in your will than add another legal document to your list of many.

 

[BassMan283]

Re: Living Trust?

I don't think you want to see what a $50 living trust looks like. Like aspeck says, living trusts aren't for everyone. I would want a competent lawyer to explain the advantages in detail before proceeding. I don't really know much about them, but I have the impression that unless the estate has a fair amount of complication you don't really gain much. Could be wrong, though.<br /><br />Did a little quick research><br /> New York Attorney General <br /><br /> scams <br /><br />These links are quick Q&A's about living trusts. Hope they help.

 

[KM2]

Re: Living Trust?

$50 for a living trust is a joke or a scam. A reputable attorney would charge between $1000 and $2500 for most peoples living wills. My question is why do need one? What advantages are you seeking? Most estate planning goals can be meet without one. <br /><br />PS When I'm not fishing or on this web site I work as a financial planner.

 

[18rabbit]

Re: Living Trust?

Trusts are in a way similar to software; the initial development is significant but the reproduction of it is really inexpensive. In that since, $50 for a ‘vanilla’ Living Trust would be too much.<br /><br />The difference between any two Living Trusts will be how they are customized to meet the needs of the estate owner. It is easier (and costs more money) to have someone else make the changes. (Note: I say ‘changes’ because any trust starts from a basic format that is then altered.) There is nothing in a trust that you cannot develop yourself with enough time and research. The catch is going to be in what is acceptable to a judge should there ever be a dispute.<br /><br />Whether you did it yourself or had a lawyer (or any other, more trustworthy professional) draft the trust, it would not be a bad idea to get 2 or 3 other lawyers to review it before settling into a feeling of comfort with your new legal document(s). Today, the legal profession is suffering from an astonishing level of ineptitude and corruption. A fool would trust ‘a’ lawyer…you now have to get a broad review of anything legal. In the end, any lawyer’s opinion is not worth a note…a judge’s opinion will be.