What is the ideal method to bequeath to those you love your property upon death, a will, distribute before death, or/and both and why?

2020-02-16T15:21:18-05:00

Through exposure and learned information, I see the benefit of doing all three. In some states, inheritance taxes will eat an inheritance into minimal dollars left. Then in some cases, the heirs are ungrateful. I have found those assets that yield immediate dollar value (bank accounts) is best given before death or to make a beneficiary POD (paid on death). As for houses, property, stocks, if the beneficiary is on the paperwork it gives them ownership (no inheritance tax complication). In my opinion and my decision making, the combination of all three yields a greater benefit to the survivors. BUT ALWAYS SEEK LEGAL ADVICE FOR YOUR SPECIFIC SET OF CRITERIA because there are cases where trusts come into necessity.

Response by SGT David A. 'Cowboy' Groth made Feb 16 at 2020 3:23 PM

2020-02-16T15:23:43-05:00

Distribute before death, less of a mess in the long run.

Response by CWO3 Private RallyPoint Member made Feb 16 at 2020 3:26 PM

2020-02-16T15:26:49-05:00

You can donate up to around 12 k to anyone you want, as many as you want, once per year. It's around there. A trust is cheap too. A solid will always works, usually. Greed is bad and leads to probate.

Response by SCPO Morris Ramsey made Feb 16 at 2020 3:41 PM

2020-02-16T15:41:14-05:00

A Shared property trust is a good way to go.

Response by SPC Michael Oles SR made Feb 16 at 2020 3:43 PM

2020-02-16T15:43:59-05:00

Good information thank you

Response by CSM Charles Hayden made Feb 16 at 2020 5:22 PM

2020-02-16T17:22:30-05:00

POD works well. A ‘life estate’ is also interesting.

Response by Maj John Bell made Feb 16 at 2020 5:25 PM

2020-02-16T17:25:57-05:00

It truly depends on the state you live in. In Michigan, your will does not matter for the 1st $600,000 of the estate. If you have a spouse, the spouse get's the 1st $600,000. My father-in-law wanted the family home in Michigan to pass to his three kids, and his spouse to live in it free for as long as she wanted. He got bad advice from a lawyer, married a former high school sweetheart two months before he died. His new spouse got everything because he used a will instead of a trust. The only reason his kids got anything was because they bought it when she sold his personal things in a yard sale.

My sister died in Arizona. She was not in communication with the family, and we did not find out she was dead until her Homeowner's association sued us over back HOA fees and clean up. You cannot inherit someone's debt, but you can be left holding the bag for attorney's fees if the estate can't cover them. When it was all over the layers got about $80k, the Funeral home got about $11k, the HOA got about $7k, and my brother and I hours of aggravation.

My Dad died in Arizona with a trust. It went the smoothest, except the people our stepmom had help her move out stole most of my Dad's personal belongings that didn't have much beyond sentimental value (Naval Officer's sword, medals, WWII fighter gun camera footage.)

_My advice, seek competent legal authority. Make sure what you want is as iron clad as you can make it.
_If you have personal things you aren't using but you want to go to a specific person, give it to them now, make sure they really want them. My mom had two huge really ugly paintings she wanted me to have. I hated them and they didn't have any value. My sister loved them. It really hurt my mom that I gave them to my sister. I still think my mom wanted me to have them because my wife and I hated them.
_Death and divorce bring out the worst in family. Don't make someone you care about the executor of your will. Pay a disinterested third party (attorney) the executor.

Response by CW5 Jack Cardwell made Feb 16 at 2020 6:31 PM

2020-02-16T18:31:55-05:00

Great information PO3 Phyllis Maynard

Response by SP5 Mark Kuzinski made Feb 16 at 2020 9:43 PM

2020-02-16T21:43:47-05:00

As you said - "BUT ALWAYS SEEK LEGAL ADVICE FOR YOUR SPECIFIC SET OF CRITERIA"
It's cheap to ask.

Response by Lt Col Charlie Brown made Feb 17 at 2020 7:12 AM

2020-02-17T07:12:49-05:00

We have wills and we have trusts that all the accounts are in. We have four children and seven grandchildren and we want to make sure the state doesn't take anymore than necessary. For personal possessions, we are going to start giving them out in this next year so no one is held responsible for distribution except us. You can transfer up to 13,000 per year as gifts to those you choose without tax liability. We use that to help grandkids with college expenses.

Response by MAJ A C made Feb 18 at 2020 3:31 AM

2020-02-18T03:31:16-05:00

A will clearly as it has legal standing. I can't imagine anything better than a will, updated yearly.

Response by TSgt Larry Johnson made Feb 21 at 2020 12:15 PM

2020-02-21T12:15:34-05:00

Going thru the comments, there are a couple things that stand out. Will, trust, and be sure someone in the family knows who gets what BEFORE you are gone. Also, you need to find a financial person so you will find out what happens specifically in your state. Don't pay for the expensive ones, and see if they will come out to you to talk.

Response by Lt Col Scott Shuttleworth made Feb 21 at 2020 12:35 PM

2020-02-21T12:35:12-05:00

I have seen it both ways. My wifes grandfather sat down all 5 of his daughters and the two children of the daughter that passed away. He had a map and drew off 40 acres for each. They decided among them selves who got what but it had to be done by the end of the day. they decided and it worked out. had he not done that one would have gotten more than the other from the Grandmother and it would have caused serious fighting but in the end it was the best thing to do.

I have seen wills as well that work very good because they are legally binding documents. My grandmother had a will and she laid out all of the belongings in the will and took it one step further...the put labels on the backs of furniture and pictures and knick knacks so there was no confusion. Wills keep things out of probate and also in some states avoid inheritance taxes etc.

My wifes parents are farmers and have put her name as a co owner on all the property they own so when something happens to them she is already the owner and avoids the taxes. I have a will...very simple...everything goes to my wife and if we die together, everything goes to my child. AND all of my investments/insurance is tax free when she gets it as well.

Response by LTC Stephen F. made Jun 7 at 2020 5:37 PM

2020-06-07T17:37:56-04:00

My darling wife and I set up a family trust several years ago to bequeath our assets to our adult sons in increments and to ministries in set amounts adjusted for inflation PO3 Phyllis Maynard.
WE did some research and paid a fixed price for the Trust. Some firms charge a percentage of the assets - that is the wrong approach IMHO.