How do you make a good plan with these estate documents?
A living trust and Will are perhaps the most documented estate plan documents. With a last will you can solely direct who take inheritance of your possession when you die. Also, should in case you have minors, the last will can contain names of guardian and the type of guardianship you want for your children. A trust on the other hand not only dictates what happens to you when you die but also should any disability occur. Living trust can covers three phases of one’s life: when you are alive and well, when you become mentally incapacitated and lastly after you die. Through a documented living trust, you can decide who handle you medical and financial decisions. You can also transfer your assets to a living trust. The advantages of having a living trust aside a will is enormous, as the trust document does not require probate to implement transfer of asset.
Do you need a will or a living trust?
A will and a living trust are two essential estate document for assets protection. A will states how you want your estate distributed while you are no longer alive. Living trust does the same; however, it could be used to transfer ownership and control of your estate to a trusted individual while you are still alive. An estate lawyer would advise you on the best estate document to fit your estate plan. . It is however worthy of note that there are revocable and irrevocable living trust. Both perform the same function, although, while the revocable trust permit changes in the term of the trust, assets placed in the irrevocable trust cannot be undone. However, most people ask estate lawyers, how do I know whether I need a revocable living trust or just a will? This question sometimes asked from the estate myths that the living trust is only for certain class of wealthy individuals. Well, here are some factors that would make you consider a living trust instead of just a last will.
Trust gives room to plan for disability.
The living trust cater for periods in which you might be unable to handle your finances and health. When well documented, a living trust contain how you plan to take care of yourself and assets when you become mentally or physically disabled. This provision would ensure an out of the court settlement for how your assets and health should be handled while also saving you money incurred from a court supervised guardianship.
Trust prevents a court supervised guardianship.
For parent with minor kids, setting up a trust to hold assets and funds you would like to pass to your children is vital. It sometimes become problem when both parent of a child dies without provision for how their retirement account or life insurance should be treated. This means they didn’t name their children as the primary beneficiary of the accounts. To avoid court supervised guardianship, you should consider setting up a revocable living trust with the child named as the primary beneficiary of the retirement account.
Other reasons to consider a revocable living trust are; it reduces taxes that may be incurred on estate, it cut off the long probate process involved in transferring assets while also keeping your estate plan private.
Bottom line
It is essential that you prepare towards what happens to your estate and assets properties when you die, as such you need to make a Will stating your desired plans.
Estate plans can be made to reflect and implement your mid, short and long term plans. However, you can speak with an estate planning lawyer to know suitable documents that would reflect these plans.
Since estate plans are made in preparation for any uncertain life occurrences, you need the right lawyers to ensure your desires and plans are duly implemented.
The living trust is an essential estate document. While other estate document such as last will may go through probate before it can be implemented, the living trust allows transfer of assets without any probate process.
Contact a Will and trust attorney today.
Estate plans are vital to protect your assets and loved ones. There is no better time than now to make these plans. The step is taken once you contact an estate attorney to discuss suitable plans for your estate.
Contact a Will and trust attorney today.