I'm exploring options to establish a trust to shield my assets from probate and creditors just in case, and potential tax benefits. Would appreciate any experience in establishing either a Delaware Asset Protection Trust, or a Remainder Charitable Trust, and whether it was necessary to pay a lawyer or you did it on your own. Would a Delaware Trust be necessary or a simple Living Trust of your state be sufficient? If you used a lawyer, how much did you pay? How difficult was it to update your property deed from to , Trustee?
For must people, the probate process is trivial. A living trust adds complications to your tax filings but that’s not a huge deal. As for tax benefits, I don’t see how you get any from this.
I heard there are more tax benefits with a Remainder Charitable Trust, but I'm still young.
Something else sketchy is going on.
Isn't all the lawyer does just filling in a form?
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Revocable trusts are a giant fucking pain in the ass to keep updated (particularly if you move across state lines) and have no tax benefit. Irrevocable trusts have a tax benefit, but you have to have sharply accruing equity appreciation for it to make sense and carry risk if you need to access these assets.
Thank you! Finally a response relevant to the thread. I've already learned this, so I'm only interested in the info raised in my original inquiry. Do you have anything else to share?
So many millionaires on Blind, and not so many know about legal tax shelters and trust benefits. What's the point of humble bragging about your TC's when you'll be shelling out 60% of your RSUs for fed and state taxes when you sell? And then to find out you can afford a dressed-up apartment otherwise known as a condo with the remaining of your hard-earned money? When I started this thread, I had gathered background info, and justed wanted to pick the brains of the experienced. Turned out the most talkative respondents so far are touchy feely idiots who may or may not be delusional (I'm talking about that funny guy @pubic2 who says he's managing multiple trusts for his other morons). I could be the most knowledgeable on Blind regarding this topic after all, although with none of my liking.
You absolutely need a lawyer to draft asset protection trusts and CRTs and in fact, you need one to determine if those and/or other tools (trusts, direct transfers, life insurance, family business structures, etc.) are best for your asset protection needs. Living trusts, well drafted and funded, can avoid probate and give you some level of creditor protection but they are not for tax planning because the assets remain in your estate.
That's not what a trust is for, maybe you are just looking for an umbrella policy?
No, a trust is different from an umbrella policy, and I'm looking to establish one, not the other.
OP, from your responses here, you’re not looking to establish one. You’ve heard words. You’ve strung these together to form sentences that you hope sound credible. If you really think a trust is just a form your lawyer fills out then you should hire one to fill it out. I recommend a charitable remainder trust. Alternately, first built out a NW. Then talk trusts. Cheers.