From what we’ve learned, a big advantage of a trust amongst the wealthy is privacy (ie keep the family’s business outside of the public probate process). And of course they have more incentive for tax sheltering than typical US couples. Done right, a Trust can be really effective. Just important to get assets properly linked to the Trust, otherwise worthless.
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I’m getting all of this thirdhand, in dribs and drabs, so who knows the real story. But I believe you got it right. I can follow along in the county records that:
ABC LLC purchased the property in 2007.
Can’t tell when they dissolved, but it must have been before 2015, because that’s when another ABC LLC started up (can’t have the same name, apparently).
ABCD LLC started up in 2015, and I since I can check on the tax records for the property since 2020, the registered agent for ABCD LLC has been paying property taxes for the property.
The real estate listing and tax records all show that it’s owned by ABC LLC, but it’s clear that this is the dissolved entity, not the new one. I find it hard to believe that nobody can find the initial documents drawn up by ABC LLC, so maybe they’re searching for it, maybe the person who drew it up passed away, maybe these are all family members who counted upon the expertise of one person, whose records were not kept, who knows?
But they’re all working on this, the title company claims they think it will close next week (I would imagine that at least someone has documents proving purchase, or the title) and in the meantime, I’m getting my money wired back tomorrow, because I sure as heck don’t want to be paying 7.75% interest for God knows how long, and I can reverse my Roth distibution within 60 days. I don’t mind a long delay if I’m not paying for it.
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In our state, the buyers typically purchase title insurance for their lender, and the sellers purchase title insurance for the buyer. We have no lender, and the sellers are purchasing a fairly pricey ALTA owner’s insurance for us that covers most things, including fraud, title mistakes, etc.
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Our home and brokerage accounts are all owned by the trust.
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That makes good sense.
For IRA, I did not think it was possible to make trust a beneficiary. Looking more closely I think possible… but could get tricky. If we do a trust someday, I think we’ll probably associate it with just the non-IRA assets. (Our 401k/IRA accounts do have named beneficiary/spouse and alternate/children. As do our bank and brokerage accounts. House was the main asset we thought could benefit from a trust, but we’ll likely sell it and downsize at some point.)
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My Ira isn’t in the trust. I think it has direct beneficiaries. I know the 401k does.
I’m one who needs to re update as my trust is over 20 years old and from another state.
We keep saying we are gonna move. I guess I’m waiting to do so b4 diving in a hoping I don’t get hit by a bus first.
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Everything I’ve read indicates that retirement accounts shouldn’t be in a trust.
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My understanding is that the IRA should not be in the trust, but the trust can and in many cases should be named as the beneficiary. A simplified example is a couple that has significant $$ in their house and their IRA and one young child. Unless you want the young child to have 100% control over the large IRA, making the trust the beneficiary is the only way to ensure there is a trustee to use the IRA funds to take care of the child and the house. It could have negative tax consequences for a standard IRA, there could be ‘fancier’ trusts to address that.
At least that is my understanding and essentially what we have had to set up so the younger children are not given any $$ (no strings attached) at an earlier age than we would want.
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I think for a non-Roth 401k/IRA in a trust, there would be tricky RMD rules etc.
The only reason I mentioned it in the trust discussion is that is where many of us hold a big chunk of our net worth (at least in the early years of retirement, before spend-down). Make sure your 401k/IRA accounts have beneficiary(s) and alternate(s) designated 
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I guess we are going to find out how the trust
works.
My fil is going to be going into a nursing home in the near future.
My mil is going to meet with the attorney next month. She and my husband are under the impression that the money in their IRA is going to be protected. Fil will be eligible for Medicaid
I guess we will see how it works soon
We’d rather look at private pay assisted living that might be more comfortable for him. She’s not willing to look at them
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Good luck with it all. Not easy.
I’ve noticed a friend (who owns a house) mentioning her coverage (for the past 8 months at “rehab” nursing home as well as previous long stays mentions “Short Term Medicaid”. Pretty sure long term medicaid is being persued, but I think her assets would need to be very low (maybe under $2000?) - she is single, so no spouse factors.
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If the IRA is in her name that is one thing - if the IRA is in his name, that is not going to be ‘protected’ - MIL will have her home and a certain amount that is not ‘spent down’.
So many people do things to keep someone out of skilled care (nursing home), but for many, the skilled care under Medicare/Medicaid is what happens when that is what manages ‘best’.
MIL was fortunate that she had the pension - she remained in her home while FIL was in skilled care/nursing home - and he was happy until Covid really shut things up and he lost his socialization.
I don’t know how trusts work, I thought they were to protect assets
I was underemployed, stayed home at times and while my contributions were important, my husband was the higher earner
The IRA is in his name as he was employed by a large company with a good match. But it’s OUR retirement money that we both worked hard to earn
I thought the reason there was a trust was to protect both of us. The high wage earner and the less well employed
Maybe we need to change the IRA. Can that even be done?
Whether or not the IRA is included varies by state: How IRAs, Pensions & 401Ks Impact Medicaid Eligibility.
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My question is, does anyone knows why you have a trust?
As a low wage earner, if my husband would have to go into a nursing home, they would get his social security, pension and the proceeds of his IRA.
I would be able to stay in our home and would have 1/2 of his social security as my only income. I wouldn’t even be able to sell the home and use those proceeds as income as those would be in the spend down period. I wouldn’t be able to afford to stay in our home with 1/2 of his social security
I thought the reason why there is a trust is to help the spouse? If it isn’t, why have a trust?
I’m confused
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This isn’t really an answer, but it the best description I have received.
You essentially already have a Will and a Trust. It’s decided by the state you reside in. If you are happy with the state deciding how and when (probate) to distribute any assets, you have no need for a Will or a Trust.
Here’s a good breakdown:
A trust enables you to control how your assets are managed and distributed both during your lifetime and after your death. You transfer ownership of certain property or accounts to the trust, and you (or someone you name) manage those assets according to your written instructions. You establish a trust to:
Avoid Probate. It can take months (sometimes a year or more), and in some states, it’s costly and public. A revocable living trust allows your assets to pass directly to your beneficiaries without probate, ensuring privacy and speed.
To Protect Each Other. In a married couple’s case, if one spouse becomes incapacitated or passes away, the other spouse can seamlessly manage trust assets without court involvement. If both are incapacitated, a successor trustee you name (like a child or a trusted professional) can step in immediately to handle bills, property, and care decisions.
To Control How and When Heirs Receive Assets. Without a trust, your heirs typically receive everything outright after probate. With a trust, you can specify:
- Ages or conditions for receiving funds (e.g., “distribute in thirds at ages 25, 30, and 35”).
- How funds may be used (e.g., education, medical needs).
- What happens if a beneficiary divorces or faces creditors — the trust can offer protection.
To Protect Against Incapacity. A trust can ensure that if you or your husband become unable to manage finances due to illness, your chosen trustee (not the courts) steps in to handle things smoothly.
To Minimize Estate Taxes (in larger estates). For high-net-worth couples, certain types of trusts (like credit shelter or marital bypass trusts) can help reduce or defer federal or state estate taxes.
To Maintain Privacy. Unlike a will, a trust is not public record. That means your family’s finances and bequests remain private, even after death.
To Simplify Multi-State Property Ownership. In our case, because we split our time between two states and own real estate in both, each property would otherwise need to go through separate probate proceedings. Our trust avoids that; both homes were transferred into the trust to simplify everything.
In short, a trust gives you control during your life, continuity if you’re incapacitated, clarity and privacy after your death, and it gives your heirs, a smoother, faster, private inheritance process.
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I wish I could answer but this forum is becoming so difficult I can’t edit or add to a post.
Anyone else having trouble with posting or editing?
I know I did just post but it’s quite difficult
I did yesterday
My understanding is if IRA goes to a trust instead of going to a spouse, it loses tax benefits. If it goes to spouse, the spouse can own it as if it is their own IRA and let it continue to grow tax advantaged. IRA in a trust will be subject to RMDs and other tax rules applied to an IRA inherited by a non spouse.
I never understood this. I believe it is true of specialized irrevocable trusts setup to avoid taxes, but not of the common revocable trust. For those irrevocable trusts, it avoids taxes but they have to give up step-up basis. If you think you will get better deal from step-up provision than any saving from avoiding taxes, you are better off not having them. For a revocable trust, taxes, you pay the same tax whether in a trust or not.
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