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Contributor
Posts: 40
Registered: ‎08-05-2010

My husband and I are considering putting our assets into a trust. We have heard many reasons in favor of doing this. Does anyone know what the down side of a trust would be? (other than the fact that it will cost about $8000.00 to do so) TIA

Trusted Contributor
Posts: 1,892
Registered: ‎02-19-2012

Try seeking the advice of a fee-only financial advisor. A few hundred bucks to meet with one could save you a lot in the end.

Respected Contributor
Posts: 3,724
Registered: ‎03-09-2010

Most attorneys will offer a free consultation and explain your options.

Trusted Contributor
Posts: 3,874
Registered: ‎03-09-2010

Why so pricey? We worked with a top attorney in our major city specializing in trusts and had ours drawn up a few years ago for under $2,000. Is your situation unusually complex, or do you live in an unusually expensive legal market?

Respected Contributor
Posts: 3,279
Registered: ‎05-15-2010

A trust shouldn't cost $8,000. Call around for recommendations to estate planning attorneys.

Honored Contributor
Posts: 8,235
Registered: ‎03-09-2010

I worked in the Trust Dept. of a Bank for 10 years, if you have definitely got the money, I cannot think of a reason not to have a Trust. They do charge a fee, but they are actually taken from your assets unless otherwise stated.

Trusted Contributor
Posts: 1,529
Registered: ‎03-10-2010
Our trust cost less than $1000 to set up. Maybe it might be more if you have a sizable amount of money. For us, it is the best way to deal with our estate.
Valued Contributor
Posts: 4,685
Registered: ‎03-11-2010

free legal advice is worth the paper it's written on. See a trust attorney.

Respected Contributor
Posts: 2,187
Registered: ‎03-13-2010

The cost sounds pretty expensive - I paid $1300 ten years ago and my BF just paid $3000 and for that we each got the trust, pourover will, POA, and advance medical directive.

Only downside to a trust I encountered - if your home is in a trust, many lenders will not allow you to refi the loan unless you take home out of the trust, refi the loan and only then can you retitle the loan back into the name of your trust. Its doable but if you don't know how to do it or don't want to take the time, it may cost you to have this done. I was too lazy to do this years ago but 2 years ago I refi'd under the HARP program and because I was using my present lender they did it for me and included it all as part of the whole home closing.

Honored Contributor
Posts: 16,299
Registered: ‎03-09-2010

As you're deciding what to do, one of the questions to find an answer to would be "How will our estate be handled if we don't have a trust?" as well as "What would that procedure cost?"

If everything is in a will and goes to probate, there's a cost for that, too, so don't assume the $8000 is wasted money. One way or another, there's a procedure to be followed, and a consultation with an elder care attorney will give you your options and help you decide what works best for you - given who your beneficiaries will be, the size of your estate, etc.

It's a big step, so if you have an estate worth anywhere near $8000 to set up, you need to spend time and some money to do the set up. We can't tell you here what your estate should cost - you'd have to reveal far more than anyone on here should be telling.