Resource for trusts/estate planning?

[dawningmama]

My grandfather's estate is finally settled and I need to do some research about setting up trust funds, protecting money and such. We are going to meet with an estate planner/financial adviser but I want to do some research myself so I know what questions to ask, what to look for in a plan, etc. Anyone have any great online resources for that kind of reference stuff? I have very little basic knowledge about these kinds of things. It's not a ton of money, but it's a decent chunk and I admit that I'm sort of frightened of it.

[SeekingJoy]

This is estate planing for you and your children?

If it isn't a "ton" of money -- and there are a wide variety of opinions on how much is a ton -- then looking at and shoring up other areas of your finances might be a more strategic option.

What debt do you have? Assets? Retirement savings? Income and cash flow? Any decisions about how to invest or spend an inheritance would depend on the rest of your financial picture.

[dawningmama]

Yes, I realize all those things need to be taken into consideration and I am not all that willing to share the specifics online. Right now, I'm just looking for reference resources for things like the differences between irrevocable trusts/trusts/annuities/college saving plans, how being a trustee affects what shows as my own assets when dealing with my debtors and taxes, etc.

[p.s]

from talking with lawyers, if it's less than 2 mil or so, then avoid the trust. Trusts do cost money to set up and maintain. less than 2 mil, it's probably cheaper to go the route of will and trying to max out of have joint ownership, such that in the case you die, the joint owner assumes ownership directly and that asset avoids probate. If more than $2 mil, then it is worth it to look into trusts as there are tax implications, etc, esp. if you have income that will continue to add to that amount.

[dawningmama]

Originally Posted by p.s

from talking with lawyers, if it's less than 2 mil or so, then avoid the trust. Trusts do cost money to set up and maintain. less than 2 mil, it's probably cheaper to go the route of will and trying to max out of have joint ownership, such that in the case you die, the joint owner assumes ownership directly and that asset avoids probate. If more than $2 mil, then it is worth it to look into trusts as there are tax implications, etc, esp. if you have income that will continue to add to that amount.

Thanks. This has been my understanding. It is under that mark. It was originally in a generation skipping trust which might have been a good idea at the time but the bulk of the actual assets were in a home that lost a lot of money in the last 4 years (lost nearly $1million in worth). And the trust fees were really large and ate a lot of money while the estate was settled (and there was a law suit and family drama and blah blah blah). The bottom line is a very very good bit smaller than when my grandfather originally set the trust up. I did not know him and he and my mother did not speak for well over 30 years so in the end even what is left is rather unexpected and a bit of a windfall for us. I want to be smart with it and have it there for my kids when they are ready for college or even as down payments on a home when they are adults.

[p.s]

from a morbid perspective, 2010 is a great year to die if you have a legacy to pass on (no estate tax). Re: the $1 mil down property, depending on where it is located, it could be more worth it to rent it out. Depending on how simple your budget is, a $1 million dollar property could conceivably return enough in rent to live off of, even after maintenance and taxes. Then, when the kids are more grown, and you need more liquidity for college, downpayment on houses, etc... hopefully by then the market will have recovered alot.
Not sure how old your kids are... or if the property is close by, or how much you all are hands on/DYI folks, but being a landlord can be a great family experience.

[dawningmama]

That makes sense but we did already sell the house (there was a mortgage---no, I have no idea why when there was cash around to pay it off). The house was in Florida in a 55+ plus gated community so I doubt renting it would have been an option as we were living in NY at the time he passed (we are in NC now).