A trust is more expensive to set up but has many great features. If you have a trust, it is invisible to the IRS. That is important in many states. They won't even blink your way, as long as the assets are sold at fair market value there will be no reportable gain, loss, or gift tax assessed on the sale. Hello? That is a win!!! There will also be no income tax on any payments paid to the grantor from a sale. Best case scenario! As an aside, you must put your property in a trust before you get ill or need care. Anyone who has had a long-term illness in the family will understand these reasons. The illness can suck the life out of your assets. When you put your property in trust before going into any type of care, it is not considered to be owned by you and is not used to fund your care.
That is why your mom did it. It was a smart move on her part.
That is also why this man did it. It can be sold asap, no waiting on anything.
I of course have never studied all the features of a trust, even though I have heard the word now and then through my life and had a shallow understanding of it. Mom put the house and property in trust for her children when she remarried, so it has been that way a long time now.
We do understand about some of the things that should be in place long before illness, but understandably, it is hard for some elderly to do it as they don't understand and think it is giving their things away where they will have no control. My Grandmother did that. She went along with some things and others she did not.
Illness sucks away many people's assets unfortunately.
You are right. Depending on when parents/grandparents make out their wills or change them, they often feel like they will lose control of their assets. I am sure it has happened in some way, otherwise, how would that rumor have started?
Illness does suck away the assets nowadays. Have you seen what the cost is for a private duty nurse if you have no insurance?
Of course those crazy things happen and it is too bad that someone can work their whole life, make a modest living and accumulate a modest amount of things, only to have it disappear. Most people would like to leave a little something for or to help their loved ones. A lot of folks also have no idea what it can take to make that happen or can't afford to put things in place to assure it.
Private duty anything is not affordable to the majority.
There are so many different trusts it is confusing.
Many people who remarry put their assets in a trust to protect their children. It sounds ugly when I say it, but, the intent is to keep your father's assets for his children, as was just an extension of what he had been doing.
I think it is a very good thing. One of the reasons that people with big money almost always have a trust of some kind.
I would not have known to advise anyone on anything about such things, but fortunately, my younger sister worked for a local lawyer for years and after that, in a large law firm (large for here ...LOL), so fortunately for us and Mom, she knew a few things.... about a few things.