Has anyone created trusts? What are the pros/cons? Do you wait for a certain net worth before you do it?

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A trust is important for more than tax planning. (1) it allows your heirs to bypass the lengthy probate process, (2) it keeps the heirs' inheritance private, as probate is a public process in the courts, (3) it keeps your heirs' inheritance separate from their relatives including their spouse, which is especially useful if your heirs get divorced (4) it allows you to set up a trustee to manage your heirs' use of the assets if they are too young.

Even if you are not rich yet, the above reasons may justify a trust. You'll sleep better knowing this is taken care of.

A revocable trust is a passthrough entity which does not have to file a tax return. When you die, the form of the trust will be changed, and then a tax return would likely be required.

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Irrevocable isn’t about net worth but rather projected net worth

If you expect to clear lifetime estate tax limits then beginning to transfer assets into an irrevocable trust so that they can grow in that trust can limit estate tax exposure.

But doing this has some cost, is a pain, and increases tax complexity in some instances (the trust may have to file)

Revocable is more about avoiding probate and is more no regrets if you have a family but doesn’t help with tax planning

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Ok - I looked them up and see how people use them but if you are trying to avoid estate taxes I believe irrevocable is going to be better as it doesn’t run into caps like the revocable A-B

Yes - once I had a kid. Helps with safeguarding assets and minimizing inheritance-related taxes. I’m not aware of any cons

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Not sure - am not an expert on this

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I’d def recommend a revocable trust. It’s no regret move and helps you avoid probate which will happen if you only have a will. Also, you can protect your money from relatives who you don’t want to participate in distributions, but who may get some of your money bc of blood line. They can contest your will. There is absolutely zero reason not to do a revocable trust. Only upside

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My wife and I have a trust. Home, cars, investment accounts, investment real estate etc are all named to the Trust so that if I die, there’s no hassle with probate.

Yea, no issues. Only difference is your signature block when you’re signing things - you sign as the Trust and Trustee, instead of as you the individual.

Remember that most estate things are under state law so you should talk to a lawyer.

This is a good callout. Our trust was established in California, and we had it reviewed and restated after we moved to another state. It’s worth reviewing and updated every 5ish years anyway IMO.

For us, it’s not just the trust but our wills, our power of attorney, health care directives, etc. Full stack of estate planning stuff and we have an estate lawyer do it all for us.

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