ElainePDX
Level 2 Member
Both my husband and I lost our parents when they were relatively young. My husband's dad died first - he was in his late 60s - and my mom died last, at age 78. Settling his parents' estate was hard and costly. Settling my parents' estate - more complex because assets were distributed among my deceased sister's five children who lived abroad, as well as others - was far easier and cheaper. My parents had a trust. My in-laws did not.
Living through these experiences, and with my mom's trust attorney as a guide, my husband and I decided to create two trusts, one for each of us. We are both trustees on both trusts. When we created the trusts in 2000, we were advised that the biggest error trustees make is that they do not put (and keep) all assets in their trusts. We have been good about putting our assets in the trusts, distributing them as equally as possible between the two. For example, whenever we buy or refinance property, we are very careful to get the property into the trust as soon as the paperwork allows that.
But recently, I have opened several checking accounts to facilitate MS. None of these accounts are in the trusts. For one thing, opening a ST account from Oregon was tricky enough; adding the trust complexity might have brought unnecessary attention to the account. Ditto for the Fidelity account I opened because the next churn will include the Fidelity Amex, the Chase account I opened to get various cash bonuses and reduce the annual fee on a safety deposit box, and the UFBDirect I was using before I opened the ST. Having a variety of accounts also helps for AP.
When my dad was dying, my mom decided to open a joint checking account with me which was outside of their trust. This allowed me to help her pay bills and gave her access to funds in the days following my dad's death. She was unsure she needed such an account, but it gave her peace of mind to do it so we did so. We maintained that account, and I used it to pay her household bills and funeral expenses when she died. The existence of this joint account with me, which remained outside the trust, caused no problems when we transferred her assets to her heirs.
But the accounts I am opening now are joint with my husband, so it isn't quite the same thing.
I realize that state laws vary somewhat, but are there any MSers here who have trusts as well as checking accounts that are outside of their trusts? Should I be concerned about this or is it a non-issue?
I know I could consult with the lawyer who drew up the trusts, but explaining MS and such to someone outside the hacking community is a bit daunting to me, and might just earn me a lecture and the advice that I mend my ways.... So before I do that, any guidance from folks here will be most welcome.
Thank you!!
Living through these experiences, and with my mom's trust attorney as a guide, my husband and I decided to create two trusts, one for each of us. We are both trustees on both trusts. When we created the trusts in 2000, we were advised that the biggest error trustees make is that they do not put (and keep) all assets in their trusts. We have been good about putting our assets in the trusts, distributing them as equally as possible between the two. For example, whenever we buy or refinance property, we are very careful to get the property into the trust as soon as the paperwork allows that.
But recently, I have opened several checking accounts to facilitate MS. None of these accounts are in the trusts. For one thing, opening a ST account from Oregon was tricky enough; adding the trust complexity might have brought unnecessary attention to the account. Ditto for the Fidelity account I opened because the next churn will include the Fidelity Amex, the Chase account I opened to get various cash bonuses and reduce the annual fee on a safety deposit box, and the UFBDirect I was using before I opened the ST. Having a variety of accounts also helps for AP.
When my dad was dying, my mom decided to open a joint checking account with me which was outside of their trust. This allowed me to help her pay bills and gave her access to funds in the days following my dad's death. She was unsure she needed such an account, but it gave her peace of mind to do it so we did so. We maintained that account, and I used it to pay her household bills and funeral expenses when she died. The existence of this joint account with me, which remained outside the trust, caused no problems when we transferred her assets to her heirs.
But the accounts I am opening now are joint with my husband, so it isn't quite the same thing.
I realize that state laws vary somewhat, but are there any MSers here who have trusts as well as checking accounts that are outside of their trusts? Should I be concerned about this or is it a non-issue?
I know I could consult with the lawyer who drew up the trusts, but explaining MS and such to someone outside the hacking community is a bit daunting to me, and might just earn me a lecture and the advice that I mend my ways.... So before I do that, any guidance from folks here will be most welcome.
Thank you!!