Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I'd like some advice on revocable living trusts. My mom has all of her investments in a variable annuity, and is considering putting everything in a revocable living trust to avoid probate, etc. However, our attorney said that probate is short in Texas to some streamlining and that the trust is more hassle than it's worth. #1 What tax advantages are there to putting everything in a trust.
Her financial planner advises upon her death to have four separate sub-trusts created for each of her kids, from which they can select from several fund families (Skandia) - and of course buy from him!! Being the Fool that I am, I would want the money available to invest Foolishly. My mom is very open at this point, but without understanding the tax rules, I am not much help at this point. #2 Wouldn't it be easier to create a will which leaves equal portions to all of the kids so that we can invest it as we wish.
Please advise. Thanks a ton!!!!
Print the post Back To Top
No. of Recommendations: 0
[[#1 What tax advantages are there to putting everything in a trust.
Her financial planner advises upon her death to have four separate sub-trusts created for each of
her kids, from which they can select from several fund families (Skandia) - and of course buy from
him!! Being the Fool that I am, I would want the money available to invest Foolishly. My mom is
very open at this point, but without understanding the tax rules, I am not much help at this point. #2
Wouldn't it be easier to create a will which leaves equal portions to all of the kids so that we can
invest it as we wish. ]]

Sorry, but I don't have the time to discuss this issue in any great detail at this time. You might want to check out the information in the Inheritance Strategies folder for additional information.

But, I would certainly suggest that you take all of your questions to an estate planning pro for additional discussion. If you attorney (who, I can only assume, is well versed in tax issues), doesn't like the idea, I'm not sure that I can argue (but it would certainly not be my first impression). But if you attorney specializes in another part of the law OTHER than tax and estate matters, you really need a second opinion.

TMF Taxes
Roy
Print the post Back To Top
Advertisement