Trusts

[goldilocks_63]

I need a trusts 101 class. I've had a trust for 5 years, and never done anything with it....

Now trying to get organized, which means moving my larger stuff into the trust..... which means my DVC stuff.

So I have 2 q's.

1. How to do new purchase into trust. Called DVC to purchase AKV, and need to have attorney do a letter of opinion? whatever that is...

2. For existing DVCs (in my name), somehow have to move into the Trust.

Any tips, info, appreciated.

I want to do this so when I die, the DVC stuff passes onto daughter without probate, but DD-8 so can't put her on membership stuff now.

I'm in my 40's.. so no problems that I know of, but just trying to grow up and be responsible (what a pain!).

Goldi

 

[MommaX03]

You need to speak with an attorney about trusts if you want reliable info in your state.

 

[RobDoc]

I need a trusts 101 class. I've had a trust for 5 years, and never done anything with it....

Now trying to get organized, which means moving my larger stuff into the trust..... which means my DVC stuff.

So I have 2 q's.

1. How to do new purchase into trust. Called DVC to purchase AKV, and need to have attorney do a letter of opinion? whatever that is...

2. For existing DVCs (in my name), somehow have to move into the Trust.

Any tips, info, appreciated.

I want to do this so when I die, the DVC stuff passes onto daughter without probate, but DD-8 so can't put her on membership stuff now.

I'm in my 40's.. so no problems that I know of, but just trying to grow up and be responsible (what a pain!).

Goldi

I agree that you will need the advice of an attorney to assist with the legal ramifications of utilizing your trust.

Basically, you will be transferring ownership of your property to the trust so that the property will be included in that vehicle for estate purposes.

I'm sure you can transfer existing property into the trust and/or can title new property with the trust as owner - but in either case legal guidance would be advisable.

Enjoy!

 

[dvcjim]

be careful.

once the trust owns it, can it ever be sold?

what if your child can not afford the dues? what if they at age 40 do not want dvc?

what if for some unforseen reason you, while still alive want to sell your DVC?

 

[Connor' Dad]

You need to speak with an attorney about trusts if you want reliable info in your state.

More importantly, make sure the attorney practices estate law.

 

[rie'smom]

be careful.

once the trust owns it, can it ever be sold?

what if your child can not afford the dues? what if they at age 40 do not want dvc?

what if for some unforseen reason you, while still alive want to sell your DVC?

Absolutely! One of the hardest things to break is a trust. Outline any details exactly like the ones above with a trust atty. No one here unless they're a practicing atty. in YOUR state can advise you correctly. Be very cautious.

 

[DVCLiz]

It depends on whether it's a revocable or an irrevocable trust. How did you set it up originally??

 

[goldilocks_63]

Mom is my family attorney. and in my state, and does estate law / taxes.. I"m taking her in May to OKW 2BR for 8 days... Maybe we could visit DVC legal then and get it straightened out. LOL!

The trust is for me, and I'm the trustee..... so upon my death, my trust goes as I designated in my will.

So I know this is what I want to do... but don't know how (and seems like DVC doesn't really know a lot about it either) to put deed into the trust.

The other stuff, is it a good idea, etc. has already been worked out.

ANyone have a trust, and put DVC into it?

Thanks for the kind thoughts though...

And if DD doesn't want DVC, upon my death, it'll go to either her or hubby (or some to each), as designated upon the will, and they can do as they like.

In fact, putting it in the trust makes it easier for them to sell, because estate won't have to go thru probate (can take up to a year, while dues are still needing to be paid). THey will be able to use and / or dispose of it as they see fit.

There are other advantages as well... but I'm just rehashing my simple interpretation of this stuff. Ask me about computers, I could help you better


Goldi

 

[RobDoc]

It sounds like "Mother Knows Best".

Better stick with Mom's advice instead of asking for lay advice on the internet.

Good luck!

 

[Starr W.]

Now all this wonderful estate stuff is great! I am left as trustee for 4 trusts and I need a wheelbarrel to get all the tax returns to post office in April.

I have all my stuff(wills & trusts) sitting on my kitchen counter waiting for DH to look at for the past 3 months, this is after a couple of revisions by my esteemed estate lawyer(he setup my late parents plans and is the reason why I have severe writers cramp in April).

 

[CarolMN]

I'm in the process of transferring our DVC into a living trust. The trust is already set up - we had an estate attorney do that. It's going slowly - because I am very good at procrastinating, LOL.

Trusts can be a good thing if you own property in more than one state. Probate is expensive and time-consuming. If you have a proper trust, your heirs can avoid probate.

Anyway, I called DVC Member Administration and asked about the ROFR waiver for transferring title to the trust. They sent me a letter that has the instructions on how to have the membership records changed. You have to get a ROFR (letter tells you specifically what to include in your request), have any Disney -provided financing paid up (no loan left) and be up to date on dues. You might have to have dues for calendar year paid up depending on type of change. Then you have to make your own arrangements for the real estate transfer documents such as a deed.

Goldi - DVC sent me the letter on 1/23/07 via email. The attachment is a word doc. If you think it will be of help, send me a PM with your email address and I will try to forward it on to you. Carol

 

[DVCconvert]

Goldie - you should be fine - DVC doesn't really care about the legal nature of the 'buyer'.

HTH

 

[JimMIA]

Our DVC is in a family trust (bought that way). Trusts can be complicated, and you definitely need the advice of an attorney who specializes in trusts. Trust law varies from state to state, so it's important to have an attorney conversant with the law in the state where the trust is established.

Virtually all states have a form document called a Uniform Declaration of Trust. UDT's are typically used when people know they want to do something but don't know how to go about it...usually at the suggestion of brokers. Don't even THINK about using one of those documents unless you only have one specific asset you want to set aside for one particular person.

There are a couple of definitions you need to understand in considering trusts:

Grantor - the person who creates the trust. Only the grantor can change the terms of a trust.

Trustee - a person who has the legal authority to act on behalf of the trust. Trustees can only carry out the terms of the trust specified by the grantor.

Successor Trustee - a person designated in the trust document to take the place of another trustee in the event of the death or incapacity of that trustee. Absolutely necessary. Without successor trustees, you could end up with a trust where no one had any authority to act for the trust-- pretty much the worst of all possible worlds for a trust. And stuff does happen which takes a trustee out of the picture.

Revocable/Irrevocable - means just what it sounds like...and as noted above, a very important distinction. The grantor can change a revocable trust at any time, for any reason, as long as they live. Most revocable trusts become irrevocable on the death of the grantor.

Corpus - the assets in the trust.

Toilet tissue = a trust without corpus. Many people create trusts on paper but don't fund them with assets. Therefore, absolutely nothing benefits from the intentions expressed in the trust. An unfunded trust is useless.

Any asset owned by the trust will be titled in the names of the trustees -- for example, Carol, Jim, and Goldi, Trustees for the Goldi Avoids Estate Taxes and Probate Revocable Trust.

Because the asset is the property of the trust -- not any individual -- all of the trustees will have to sign any documentation regarding that asset, and all trustees will therefore have to agree to whatever is being done with an asset. That could be difficult in some situations, especially if you have several trustees and they don't live in the same area...or, obviously, if the trustees disagree or have a falling out.

There are three keys to trusts -- getting an attorney who really knows trusts, going to school yourself so that you thoroughly understand your particular trust...and funding the darn thing by titling the assets you want to preserve in the name of the trust.

 

[goldilocks_63]

Carol, thanks for the help, I'll send you email address.

I have a trust, something like Goldi M. Locks Trust Dated Dec. 1, 2000.

SO that's what I'm trying to buy AKV points into, and have to have an lawyer fill out an opinion letter (I think saying I really have a trust, or something, and this is what I want to do).

BUt then I have to put other stuff in the trust. I tried to do it for SSR, but guide really resisted, and said, oh just buy, and move it later.....

Now, if I understand correctly, I'll have to get everything re-deeded (and since I've added on 10 times, each one has to be done, I think). So I may just move the SSR and AKV stuff into the trust (for estate purposes), and let the other stuff go. May sell in the next 10 years... THinking of replacing OKW with the longer term stuff after hubby's and mine parents (85ish) pass away...

What does it cost to re-deed each one, and how to do it, anyone?

I'll let people know the process as I figure it out.....

GOldi

 

[drusba]

As a lawyer, my best advice to you is go to one and not hope you can avoid it. It sounds like you have a Living Trust. What you need to do is not hugely complicated, e.g., for property you own, you need to transfer your ownership by deed to the trust for each different contract you have and the costs will depend on what Florida requires for such deed transfers; for purchasing new and putting into trust, the transaction simply has the Trust formally executing necessary documents and the deed goes to it. But to assure there are no mistakes and everything complies with the trust documents, a lawyer is necessary. A lawyer also assures that if anything goes wrong afterwards, you will have someone to blame other than only yourself.

 

[msdis]

What are the basic reasons for having a trust vs. a will? I always thought it was based on total worth and since they have increased the taxable limits most people's net worths fall short. What are other reasons for trusts? How does that work for taxes and is that the only concern? What aspects is it that is different between states? Thanks to anyone who can explain and give some general information. This is all greek to me.

 

[goldilocks_63]

MsDis, I don't mean to be unhelpful, but I am afraid to answer because all the info I have relates to my situation.....

And I think that this is the kind of thing you definitely need to talk to a qualified person to get a proper answer, for your situation.

Goldi

I will however comment on how my situation is proceeding... RIght now I'm waiting for opinion papers to be faxed to my attorney, so I can put new AKV purchase into GOldi's Trust.

I'll deal with the past purchases after that is completed.

 

[JimMIA]

Carol, thanks for the help, I'll send you email address.

I have a trust, something like Goldi M. Locks Trust Dated Dec. 1, 2000.

You don't need to post it here, but you need to understand what KIND of trust you have.

SO that's what I'm trying to buy AKV points into, and have to have an lawyer fill out an opinion letter (I think saying I really have a trust, or something, and this is what I want to do).

The opinion letter is a letter from the attorney stating that he has read the trust documents, that the trust is properly established, that the trustee(s) are as indicated on the purchase agreement, and that the purchase of the DVC timeshare does not violate the terms of the trust. (In other words, that the trustees are acting legally and within the scope of their authority.)

BUt then I have to put other stuff in the trust.

You need to "put stuff in" the trust, depending on what you want to trust to own and manage. You don't have to put anything in a trust, but the trust has no authority to manage any assets that are not titled in the trust.

I tried to do it for SSR, but guide really resisted, and said, oh just buy, and move it later.....

This is a prima facie case for calling a supervisor and demanding a new guide. This guide has not one clue what is the most beneficial method of ownership of your DVC contracts. This is a guide who is only thinking about their own personal financial interests. Get rid of them.

 

[JimMIA]

What are the basic reasons for having a trust vs. a will?

A will designates the disposition of assets upon your death. A trust outlines who shall manage certain assets placed into the trust (regardless of whether the original owner of the assets is alive or dead), the expectations and limitations on their management, and many, many other things.

A trust generally avoids probate because YOU no longer own the assets. The trust owns the assets, and it doesn't die.

That's not to say you give up control of both the assets and the trust. The trust can be revocable, with you as the grantor, which means you can change any terms in the trust at any time as long as you live. You can also be the sole trustee (although I'd think that through carefully)

I always thought it was based on total worth and since they have increased the taxable limits most people's net worths fall short.

Avoiding estate taxes is one benefit of some trusts, because the trust owns the asset, not the person who died and left an estate.

Possibly a more important benefit (especially when significant assets are involved) is the continuity of management of the assets. When the grantor of a trust dies, the trust goes on unimpeded by the courts or other encumberances. The trustee(s) continue to manage the trust and there is no "downtime." That ability to actively manage the assets in a trust can be critical in many situations.

What are other reasons for trusts? How does that work for taxes and is that the only concern? What aspects is it that is different between states? Thanks to anyone who can explain and give some general information. This is all greek to me.

There are all questions which should be addressed by an attorney who specializes in trusts in your state. Nobody here can give you answers to these questions. If you think a trust may be beneficial for your family, you really need to spend some serious quality time with a good trust lawyer.

 

[disneykidatheart]

Nobody here can give you answers to these questions. If you think a trust may be beneficial for your family, you really need to spend some serious quality time with a good trust lawyer.[/QUOTE]

The statement above is absolutely a must!

Be wary of so called seminars that are held in hotel conference rooms or restaurant meeting rooms. They are sometimes run by trust mills and they are very common.

My intelligent late 70's parents were sweet talked by a financial planner who sent their information on to a self professed paralegal (whose actual degree was in engineering). He cut and pasted a 31 page document of inconsistencies that was meant to circumvent any possible chance of the trust being broken. The trust was rubber stamped by a lawyer who never met with my parents. When Dad died both he and my living mother's trusts became irrevocable. The assets in his trust which were the result of their life together were not to go to my mother who is now exhibiting all the signs of alzheimers and will need them.

My sister and I as trustees never saw the trust document until after my Dad died. It took two years, letting the first attorney go, having the second attorney decline to take on the problem, and a very gutsy third attorney to get the problem fixed. With advice of little hope for success in breaking the trust and a leap of faith on our part, our attorney led us to court where the irrevocable trust was broken. In the end it cost around twenty thousand dollars to save a fairly modest estate for my mother's use. As written, the administration of the trust would have been completely depleted in lawyer and accounting services. Our attorney had never seen a worse trust in her twenty years as a lawyer. She was so angered she reported the incident to the state because she felt we had incurred "real" damages. Unfortunately for us, the state of Michigan is passive in dealing with trust mills and we will not likely ever see a good resolution for any recovery of damage.

Last week my husband and I were in a restaurant in Vero Beach. We could overhear the conversation at the next table regarding the meeting the couple went to at a hotel to learn about trusts. They were favorably impressed with what they heard. I just cringed and it was all I could do to stay in my seat and mind my own business.