Do financial assets (Bank accts, brokerage accts, etc.) currently in the name of an individual with named beneficiaries avoid going through probate?
If not, will those same assets in the name of a revocable trust avoid probate?

Anonymous wrote:Bank accounts don’t have beneficiaries.

What? Of course they do. People can be named for payable upon death.

Anonymous wrote:Bank accounts don’t have beneficiaries.

Lol wut???

Anonymous wrote:Do a will and put your kids on the accounts.

That gives them the most flexibility.

No it doesn't, it removes the step up in basis for brokerage accounts. That is a bad idea.

Do a will and put your kids on the accounts.

That gives them the most flexibility.

Bank accounts don’t have beneficiaries.

Anonymous wrote:Wouldn't the will need to go through probate before the testamentary trust kicks in? Doesn't that negate the idea of a trust to avoid probate?

Yes but the point is that for this size estate in this area probate isn’t a big deal. You will spend more avoiding probate than going thru it.

You don’t need a trust with only $2m.

You can use a will.

Wouldn't the will need to go through probate before the testamentary trust kicks in? Doesn't that negate the idea of a trust to avoid probate?

You don’t need a trust. If you were going to have a trust a testamentary trust would make more sense. Get new lawyers.

Anonymous wrote:

Anonymous wrote:We have more but under $5m, and I have a will with a straightforward testamentary trust. Everything but the house would avoid probate because we have beneficiaries/successors listed. The house has a mortgage with a due-on-sale clause, so it's not going into a trust any time soon. Until someone can convince me otherwise, I see no need for a trust.

We have similar (slightly higher) NW, 3 ski condos, and a primary home with a tiny mortgage. We set up a trust to avoid probate on the ski condos - one for each kid. Our investments other than our 401ks and Roths are in our trust account. So one family trust and small trusts for each kid.

Why put the ski condos in a trust now rather than use a testamentary trust in your will to transfer the ski condos at death?

Anonymous wrote:We have more but under $5m, and I have a will with a straightforward testamentary trust. Everything but the house would avoid probate because we have beneficiaries/successors listed. The house has a mortgage with a due-on-sale clause, so it's not going into a trust any time soon. Until someone can convince me otherwise, I see no need for a trust.

We have similar (slightly higher) NW, 3 ski condos, and a primary home with a tiny mortgage. We set up a trust to avoid probate on the ski condos - one for each kid. Our investments other than our 401ks and Roths are in our trust account. So one family trust and small trusts for each kid.

We have more but under $5m, and I have a will with a straightforward testamentary trust. Everything but the house would avoid probate because we have beneficiaries/successors listed. The house has a mortgage with a due-on-sale clause, so it's not going into a trust any time soon. Until someone can convince me otherwise, I see no need for a trust.

Net value of around $2 million, we have two adult kids. We're trying to update an old will but all the lawyers are telling us we should get a trust. Apparently trusts cost $6000+, which is not in our budget. Why do we need even need a trust or a will? Why can't we just name our kids as beneficiaries on our bank accounts and retirement accounts, write a letter telling them to sell the house and then divide everything up 50-50?