Estate Planning
What is a Will and What does it do?
You know the saying: You can’t take it with you. The things you leave behind will have to go somewhere. A Will is a legal document that allows you to say where those things will go. It is a set of clear instructions for your survivors.
Having a Will helps your loved ones. Wills also give you the chance to decide who will take over for you as a parent. If you don’t make a Will, the state government makes these decisions. Wills are often used as a simple, cost-effective option for making final arrangements. They become public knowledge when you die.
Do I need a Will?
YES! We believe everyone should have a Will at the very least.
Why? Because a Will puts you in greater control of what happens to your possessions and your children after your death. A Will makes sure your wishes, and not the state government’s default rules, are carried out.
What can I put in a Will?
Wills let you decide who takes care of your children, who will receive your property, how your funeral arrangements are to be made, and otherwise “gives away” everything you own when you pass away.
What kind of Will is right for me?
Speaking with a lawyer is the best way to choose the Will that is right for you. A lawyer will also be able to help decide if you will need additional, more complex estate planning documents, such as a Living Trust.
What is a Trust?
When you die, you need a set of instructions to leave your survivors. That way, they will know what to do with your possessions. A Will can do this, but what if you want a plan that does more than just split up your things among your friends and loved ones? What if you want a plan that works while you are alive and continues to work long after your death?
Trusts are long-term arrangements handled by a Trustee, or manager of the Trust. Trusts are flexible. They work for you while you are alive or begin after your death. Because Trusts require time, attention, and a manager, Trusts are more expensive than wills. There are many types of trusts. Trusts which are created by Wills are known as "testamentary trusts." Trusts are too complicated to be used in a Statutory Will or fill-in-the-blank Will. You should see a lawyer if you want to create a Trust.
Special Terms:
Trustee:
The Trustee is the person who is in charge of managing the money in the Trust. Usually, the Trustee is you, until you die. Sometimes, it is someone you trust, or a lawyer. The Trustee is required to follow the rules that are laid out in the trust.
Beneficiary:
The Beneficiary is the person who gets to receive money out of the Trust. Sometimes, you can be both the Trustee and the Beneficiary. Often, you will be the Trustee and the Beneficiary of your Trust until you die. Then, upon your death, someone else will become the Trustee (for example, your spouse or lawyer) and someone else will become the Beneficiary (for example, the new beneficiary could be your spouse, or it could be your children).
Do I need a Will or a Trust?
The short answer is: YES!!
We believe that EVERYONE NEEDS A WILL and MOST PEOPLE WOULD BENEFIT FROM A TRUST!
Having just a Will is typically best for younger people without children, with fewer assets (less than $500,000), and for those seeking a low-cost way of planning for death. If you do not have a lot of property, and you are relatively young, having just a Will might work for you. All the same, a Trust can benefit you while you are alive. An attorney can help you make the best choice.
The following People should SERIOUSLY consider creating a Will and a Trust:
- Everyone with children under the age of 18
- Everyone with net assets over $500,000
- Everyone with assets that exist in other states or other countries
- Everyone who is estranged from their family
- Everyone who wants to give their favorite nephew something, but doesn’t want him blowing it on a fast car or in Las Vegas!
Both Wills and Trusts are meant to put you in control of what happens to your possessions and children after your death.