[USER]

I HAAAATE talking about this… My mom is 80 and making a living trust. She owns 2 residential properties in NYC, has about 1mil in personal accounts as well as 1 or 2 401K accounts.

She’s a self-made entrepreneur business owner who was a poor immigrant from PR. No other family and I have no siblings.

If it were up to me I’d want nothing to do with it because it’s horrible to even think about, but my mom would like input.

Based on this information, do you think revocable or irrevocable would be better. (We have a lawyer but would also like opinions)

Thank you!

[Molly]

Revocable for title to houses and non- retirement accounts, Beneficiary designation for 401k and other Retirement accounts…

unless your State allows Transfer on Death Deeds for Real Estate…

a lawyer should explain her options…the goal is to avoid Probate because it’s slow and expensive

[Miriam]

I think that should be Medicaid planning instead of Medicare but maybe both. Medicaid pays long term care though

[Shawn]

Personal residence, an LLC for rentals, the asset protection afforded to 401ks and good insurance should take care of asset protection.

She isn’t really in a position to need Medicaid planning.

She can afford a nice nursing home. I think the tax deductions are mostly non-existent.

Revocable is the way.

[Robert]

Spend the money for a consultation with a good Estates and Trusts Attorney.

Nothing wrong with seeking the guidance of the hive mind; but consulting with someone who does this for his/her livelihood.

A good one will not be cheap, but well worth the money.

[Jennifer]

Revocable trust
We were also given advice to name the trust as the beneficiary on all accounts.

[Jae]

Discrete high value assets (home, HYSA, etc) = put it under the revocable trust.

401K, retirement accounts = name you as beneficiary.

It doesn’t do a whole lot more unless you’re worried about minors, folks with disabilities or you can’t trust some beneficiaries with large sums of money for these kinds of assets.

If there’s more value than what you described, work with an estate planning attorney to work through how to further retain assets with revocable trusts, shelters, etc.

[Cathy]

Revokable trust.
Make sure someone is named beneficiary on all accounts that allow it.

[Guinard]

Revocable! Very similar situation to ours (but not as valuable as NYC properties—CA and DC). My mom chose irrevocable due to misplaced concerns and I’m paying for it now that she has passed.

Make sure you are the beneficiary and the trustee.

It gives the most flexibility.

[Liz]

Revocable you get a step up upon death but irrevocable you do not. That’s a huge benefit to you as beneficiary long term.

[Author]

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