Why do I need a will or estate plan?
Things happen all the time. A will and estate plan can help guarantee that your wishes will be honored after you die.
What is a will?
A will instructs the court what to do with your property after you have died. Every will has to go through probate.
What is probate?
It is the legal system for what happens after a person dies, where the court decides if the will is valid and appoints someone to manage the estate, and creditors are paid and assets are disbursed either based on the will or how the court sees fit (if no will is in place).
What is wrong with probate?
People can come out of the woodwork with probate, disputing the will and causing disruption and delays in the whole process. It can be a lengthy and sometimes expensive process.
What is a trust?
A trust is a legal contract that allows you to transfer assets to a beneficiary. A revocable, living trust lets you maintain possession and control of your assets while you are alive and distribute your assets as you want without going through probate.
Are trusts new?
No, they have been around for hundreds of years.
What happens if I become incapacitated and I have a trust?
A successor trustee replaces you and manages the assets owned by the trust.
Who controls my assets in a trust?
You, or whoever you designate as grantor or trustee does.
How do my assets get into my trust?
Property has to be deeded into the trust. Money can be added as a payable on death (POD) designation. Other policies can have the trust listed as the beneficiary.
How much time does it take to prepare?
It depends on the needs and the complexities of the trust, but it is a lot less headache and takes a lot less time to do it now than having your family deal with you not having one later.
If I die or become disabled, who will control my assets?
Whoever you designate as a successor trustee.
Who should be a successor trustee?
Someone you trust and who is responsible. There are no real qualifications, and it can be who you choose.
Can my trust keep going after I die?
Yes, it can continue to be managed by your trustee.
What about estate taxes?
Talk with your lawyer about your specific needs as special provisions can still protect your estate.
Should a lawyer prepare my trust?
Yes. You want to make sure everything is official and legal.