I do recommend deeding the property to the kids before death as a way to beat probate, and JTROS is a good way to go IF you're pretty sure the folks can afford to pay for a nursing home if they need to go. If not, and they have to rely on Medicaid to pay for it, a lien will accrue on any property they still own, including JTROS property.
Most of what I encounter is folks of modest means, with the family home being the only real asset- this situation is especially susceptible to the Medicaid problem (with nursing homes at 6 grand per month, it doesn't take long to go through most any nest egg). In those situations, I prefer deeding the property outright to the kids, and reserving a Life Estate for the parents. And this has an unusual bonus, at least in Washington- if parents have a life estate and are still living in the house, kids can get the Sr. Citizen property tax exemption, which can be substantial.
Not really a big fan of trusts, because as John T points out, it is a very expensive leather notebook and lunch. The trust purveyors don't follow through with helping to put everything into the trust, they just go on to the next Holiday Inn and put on another lunch. If the trust is not funded, its worthless, and you still have to do a probate. And most of my probates run less than $2,000, so why spend $3,500 to avoid one?
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Today's Featured Article - Listening to Your Tractor - by Curtis Von Fange. Years ago there was a TV show about a talking car. Unless you are from another planet, physically or otherwise, I don’t think our internal combustion buddies will talk and tell us their problems. But, on the other hand, there is a secret language that our mechanical companions readily do speak. It is an interesting form of communication that involves all the senses of the listener. In this series we are going to investigate and learn the basic rudimentary skills of understanding this lingo.
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