QuickQuote Insurance Forums - Trust vs. estate

VeganGirl Forum Newbies QuickQuote Forum User Posts: 29 Gender:	Trust vs. estate 03/06/08 at 14:23:41 I have read that it may be better to list a trust as your beneficiary rather than naming your estate or a person. I don't have a trust, but I would put one together if it meant I could avoid problems. Will this help me avoid taxes if I list a trust as beneficiary?
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TeddyBMW

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Re: Trust vs. estate
Reply #1 - 06/25/08 at 13:22:02

If you have a very large estate it may be better for you to create a trust to name as your beneficiary. Listing your estate as a beneficiary can cause problems if your estate is large enough to be taxed, or if it would become large enough to tax should a large sum of money (like a life insurance benefit) come into your estate. If your estate is smaller than 1 million you probably don't have to worry, but just check with your financial advisor to be sure.

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Mogul

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Re: Trust vs. estate
Reply #2 - 07/08/08 at 14:40:48

I believe it may be up to 1.5 million now.

Quote from TeddyBMW on 06/25/08 at 13:22:02:

If you have a very large estate it may be better for you to create a trust to name as your beneficiary. Listing your estate as a beneficiary can cause problems if your estate is large enough to be taxed, or if it would become large enough to tax should a large sum of money (like a life insurance benefit) come into your estate. If your estate is smaller than 1 million you probably don't have to worry, but just check with your financial advisor to be sure.

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Solutions

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Re: Trust vs. estate
Reply #3 - 07/09/08 at 11:28:41

Quote from VeganGirl on 03/06/08 at 14:23:41:

I have read that it may be better to list a trust as your beneficiary rather than naming your estate or a person. I don't have a trust, but I would put one together if it meant I could avoid problems. Will this help me avoid taxes if I list a trust as beneficiary?

Current tax exclusion for estate tax purposes is 2 million, Next year it will be raised to 3.5. The year after it will drop back to 2 million.

www.nmfn.com/eugenegoldberg

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SHarris Forum Newbies QuickQuote Forum User Posts: 5	Re: Trust vs. estate Reply #4 - 07/15/08 at 11:34:59 I have only a net worth of about 250k right now, but I will be coming into a large inheritance in the next 20-30 years. I am thinking about creating a trust now even though my estate is not very big yet.
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Re: Trust vs. estate
Reply #5 - 07/28/08 at 13:40:17

Quote from SHarris on 07/15/08 at 11:34:59:

I have only a net worth of about 250k right now, but I will be coming into a large inheritance in the next 20-30 years. I am thinking about creating a trust now even though my estate is not very big yet.

I wouldn't recommend creating a trust now, because laws may and will change throughout 20-30 year period.

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