Good use of a Living Trust?

[James Miernicki]

Hello BP Nation - I have a question about the use of a living trust from the perspective of a buy & hold investor. I am looking into setting up a living trust with an attached pour-over will for the purpose of avoiding or streamlining the probate process in the case of my unexpected death.

Props to @Joshua Dorkin , @Brandon Turner, and @Neal Frankle for BP Podcast 005: Dealing with Death. I have looked into living trusts in the past but this podcast has re-energized me.

My question concerns a property solely in my name that I plan to refinance within the next 18 months. Is it best to write that into the pour-over will then move it into the trust after refinancing is complete?

Other items of value would be placed in the trust right away: property that has financing squared away, brokerage accounts, savings accounts, and possibly vehicles.

401ks and IRAs would not as they have their own procedures for naming beneficiaries.

Another option would be to utilize TODDs (Transfer on Death Deeds) for all properties:

“A TODD is comparable to the use of pay-on-death or transfer-on-death accounts at banks or with brokerage houses in that a TODD allows the owner of real property to designate a beneficiary of the property, and, upon the death of the owner, the property passes to the beneficiary as non-probate property, without the disadvantages of using a joint tenancy or life estate deed.”

So…I guess I have two questions:

1) Is naming a property in a pour-over will then placing it in a living trust once financing is squared away the “right way” to do it?

2) Does anyone have experience with using TODDs for real property either positive or negative?

Thanks for taking a look at my post!

Happy investing,