How does a trust work?

[cynner]

The first part is not accurate. The will does not dictate placement of assets in the trust. The assets have to be placed in the trust beforehand. Basically the only thing that has to go through the will/probate are assets that are outside the trust, which are typically minimal. Only my cars and motor are outside our trust.

You are correct. You must transfer your assets to the trust (for example, executing and recording new deeds for real property.) What I said about wills in my previous post was based on my experience working for one estate planning lawyer a few years ago, and I admit I don't remember all the specifics.

Creating a trust is not a DIY project. They can get really complicated and are best left to the professionals.

 

[Archimedes]

both actually

at any time the 2 trust owners can add or remove items from the trust - tax implication abound for both functions

I'm learning more as I go through this "exercise"

EDIT: it sounds like you are discussing what occurs after death so disregard

I am learning the trust was created for tax implications/purposes

Okay, you're talking about something entirely different. I assume that you're talking about a charitable remainder trust or something similar. Totally different set of rules than a simple living trust for inheritance, child protection purposes. You need a tax advisor more than a trust lawyer.

 

[Yakoo752]

Okay, you're talking about something entirely different. I assume that you're talking about a charitable remainder trust or something similar. Totally different set of rules than a simple living trust for inheritance, child protection purposes. You need a tax advisor more than a trust lawyer.

both - it's so much more complicated then I would have ever imagined

We are speaking with the lawyer that drafted it along with both owners of the trust.

 

[Sharky]

both - it's so much more complicated then I would have ever imagined

We are speaking with the lawyer that drafted it along with both owners of the trust.

Good way to go.