by Admin
Posted on 02-03-2024 11:57 AM
Everybody needs a will, which establishes an executor of your estate and also determines how your assets will be distributed when you pass away. In addition to asset distribution among your heirs, wills also outline your last wishes, including your funeral or burial wishes, as well as any messages or videos to specific family members. However, a will is a public process and can sometimes open up the estate to challenges. A trust , on the other hand, provides those same benefits and many more. For example, a trust is private (vs. Public) and can help your heirs avoid the probate process.
Simple will generally gives everything outright to surviving spouse, children, or other heirs. Will with testamentary trust married couples with minor children will can pass everything to their spouse, if living, and if not, to a testamentary trust their minor children until they become more mature. Pour-over will generally used in conjunction with a living trust. It picks up any assets which were not transferred to the trust during the person’s lifetime and “pours” them into the trust upon death. The assets may be subject to probate administration. “straight through” living trust (without tax planning) the surviving spouse retains or gets full control of the assets and income.
A will is a legal document that explains what you want to happen when you die—and puts it all in writing. It outlines things like who you want to get your stuff, your money, and guardianship of your kids or pets. There are many different types of wills. But for most people, a simple will is enough. In fact, for 95% of people, a will is all you need to establish a rock-solid estate plan—one that protects your family if something ever happens to you (and it will, eventually at least). If you have less than $1 million in assets, you can just stop right here and get yourself a will.
Many of our clients who are interested in setting up an estate plan have done some research and talked to friends and family about what to do prior to meeting with us. Often, people have questions about avoiding probate , costs, and estate taxes. Most clients understandably want to preserve assets and simplify the process for their surviving spouse and heirs. In many instances, the question comes down to using a will or a revocable living trust. Which is best? what are the advantages and disadvantages of each? most importantly, which estate planning tool best meets the needs of the particular client and his or her family?.
The legal process by which property is passed from a person who has died to his or her heirs is called "probate" and the usual method for determining who shall inherit the various assets entails the court enforcing the instructions in a written document designating heirs called a "will". Recently, in an effort to avoid some of the costs of probate, it has become popular to create a legal document called a "trust" in which instructions for distributions after death are contained and which, if properly prepared, transfers assets after one's death without court involvement (and formal probate) but which achieves intended post death distribution as effectively as a will.
Discover what the differences are between a trust and a will and which is the best option for your estate planning situation at trust & will today!.
Wills and trusts are important tools that can help ensure your wishes are carried out. Here’s a rundown of what you can use each one to accomplish. A surprising 55% of americans don’t have a will, but they are critical documents because they allow you to establish how your assets are handled after you die. If you don’t have one, state laws will determine who gets your assets and your heirs may face delays and expenses in trying to get their inheritance. Key facts to know about wills include: they don’t have to cost a lot of money to create.