My parents (divorced) have property they want to put into a trust. Dad also has retirement accounts, and I think I will inherit everything. Mom only has the property, and I think she will want it sold, and then my brother & I share the proceeds. Are there any legal/ tax considerations to be aware of? Dad doesn't seem to plan on putting the retirement accounts into a trust - should he? Why? Dad charges everything; what happens with his debt after he passes? (TX if it matters)

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he should put it in a trust to avoid probate. It also protects from lawsuits. If he has LTC needs and is on Medicaid, it could protect from medicaid draining assets before covering that LTC. There is a 5 yr look back period, so getting the trust det up sooner than later is best.

My estate attorney told me not to assign the trust as the beneficiary of my retirement accounts He said to name my SO. (This might be state specific so might be best to check with an attorney). Most importantly make sure that your dad has updated his beneficiary. I’ve heard of cases where the person doesn’t change their beneficiary and years later the ex-spouse inherits a multi million dollar retirement account.

I’m pretty sure the estate will have to settle debts before remaining assets are distributed.

The debt will be settled after he passes as part of the estate. If he does not have an insurance policy this would be a good time to add so that the debt can be paid by the insurance and the other items of the estate can be appropriately distributed through a will, if he does not have or will do a trust.

The policy can assist as a replacement strategy to assist.

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