Living trust or irrevocable trust?
Is he also the beneficiary? Thought beneficiary can’t be trustee.
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It is a Revocable Living Trust and pour-over will (NOT GRAT).
He is Successor Trustee and can take over managing after our life term. IIRC, they get all assets at step up basis.
http://www.trusts-etc.com/dutiesofsuccessorttee.html
I have not revised it or re-looked yet, it was created 10 years before, hanging around.
Isn’t that defeat the purpose of a trust? Is supposed to be a separate entity so there would not be any tax implications upon your death. Now, you have to pay estate taxes… doesn’t matter if it is less than $5 mil.
Why keep it if you wouldn’t use it? Do you have emotional attachment it to her jewelry?
We Asians get a ton of that gold at our weddings, baby parties, etc that ultimately just sits in a nightstand or security deposit box. Sure, there is some sentimental value but if your wife gets an armful of gold bracelets on the big day how sentimental can they be, right?
He probably believes that he will eventually inherit all of your assets, so no need to buy a condo at the moment.
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BINGO!
This Baby Boomers is why you should spend your children’s inheritance. Leaving it to them is such a waste. 
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Beneficiaries can be made trustees. My sister and I just had to go through this because I took over handling my mother’s finances. Now, there are three trustees.
I only hope mom doesn’t outlive her money. She had what we thought was plenty. But, at today’s costs for an assisted living home that escalate quickly with levels of care, money isn’t what most think it is.
Which is exactly where the burlars find them. BTDT. 
Yes but defeat the purpose of a trust wrt estate tax for inheritance more than $5 mil.
See Tom’s Answer “Beneficiaries can be made trustees”. In this case, whatever balance is left, they will get at step up basis.
you have to pay estate taxes
I do not think there is estate taxes.
For example: I bought a rental home say at $500k and live on rent for ever, until my last day. After that he inherits the property. At that time, if the value is 1M, he inherits 1M basis, there is no tax for him. Supposing he holds one or two years and sell the home at 1.25M, he has to pay long term capital gain for $250k only. This is what I understand, but I do not know complete legal details.
It was prepared by RE lawyer. The lawyer sent us 8 page questionnaire to fill after 30 minutes 1:1 interview. He prepared and sent it to us for signature. It is a big books/bundle, we signed like the way we sign loan documents.
Now you have a point, if it is above 5M, there may be issue. I have not deep dived on above 5M inheritance. At the time of LT creation, we did not reach the limit.
I knew that I need to discuss with a lawyer and revise it later. I am lazy enough not to look at that subject what to do above 5M.
hanera,
For sync: I just deleted my comment (which had your comment) based on your deletion
For inheritance above $5 mil.
Max out annual gifts to your son.
Pump money in his ESA (up to 18 years old)
GRAT (usually 1-2 years for fast appreciating asset, very complicated)
Form a LLC for your property and gives discounted shares.
Trust is for:
Speed up probate.
Liability protection for your children (in case they get sued, trust is not involved since it is a separate entity).
Ensure money is passed to your children in the situation of one or both of the parent dies.
Just read on page it says “It’s official—for 2016, the estate and gift tax exemption is $5.45 million per individual, up from $5.43 million in 2015. That means an individual can leave $5.45 million to heirs and pay no federal estate or gift tax. A married couple will be able to shield $10.9 million from federal estate and gift taxes. The annual gift exclusion remains the same at $14,000”
Looks like 10.9 is big enough. Above all, I have two sons, if they divide, it will not reach this limit.
Why buy a home at today’s property tax rates when you can inherit your parents’ home with property 13 property taxes?
What is the assurance or Guarantee? Nothing . If parents property comes, it is nice and good, otherwise?
Everyone has to work for their life and survival, they need to secure themselves for FI. Investment, any form stock or real estate or other inv, should be in their road map !
Paying rent is wasting their own money. Primary home owning is very important in everyone’s life. Earlier the better !
There is no exception to this rule.
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I’d keep them out of respect since they are something that she cherishes, that is all.
It’s hardly $5M
I’m not the only trustee or beneficiary.
I am a progeny of the original grantors but hardly a child anymore.
Jil’s comments are valid:
Trust distributions are taxed above that threshold for anyone receiving them.
This is the irrevocable marital trust remaining after the death of one of the original grantors. There are slightly different implications for estate tax purposes.
As an aside, I “made” my mother stop distributing maximum non-taxable gift each year to my sister and I when we sold her house and moved her to the assisted living center so as to conserve her estate for her own use. Her expenses increased significantly at the time.
I had pleaded with her for years after my father’s death to keep the money in case she needed it. I told her I didn’t need it and she might.
She said she would rather we got it not and not have to wait.
I told her that she could end up with nothing, still need the money and I’d just have to give it all back taking care of her.
I don’t think my sister has forgiven me for pushing that issue and finally getting a result. 
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