Archive for the ‘ Trusts ’ Category

« Older Entries

An Overview of the Types of Wills

Tuesday, November 22nd, 2011

Planning your will is one of the best things you can do for your estate, as well as for your heirs. The question is what is the first step? Before you can make decisions regarding the creation of a will, it is critical to understand what your options are. Numerous types of wills accommodate most desires and wishes within the letter of the law specific to your state.

In short, all wills are documents that legally outline your goals for your estate. There are various ways to make those wishes take place.

  • A Simple Will covers basic needs. This includes the distribution of assets, and is often preferable for those with limited assets and smaller estates.
  • A Guardianship and Trust is a document outlining your goals for your children, including those children who are minors, or those who are disabled and unable to care for themselves. This document will specify your instructions in terms of who will take guardianship of the children, as well as who will manage the children’s estate after your death. This includes all funds and assets you plan to leave to your child after your death.
  • Revocable Living Trusts are another type of will planning tool. This will allow you to create assets that pass on to your heirs according to your wishes, but that do so by avoiding probate court. If you wish to leave money or assets to family, friends or charities, this is a good way of reducing tax implications on the funds. You can also change these trusts throughout your lifetime, as you need to.
  • Pourover Wills are yet another type of will. It compliments a revocable living trust by addressing any assets that are not included in the trust. It works to transfer those assets into the trust at the time of your death.

Selecting the right type of will is a complex process. Because of taxes and legal requirements that do change frequently, it is up to you to choose the right will for your goals and based on the size and type of estate you have. It is always a good idea to work with a trusted attorney for this process since the attorney ensures the will is legally binding and fills all necessary requirements. If a will is not valid, anything you planned for will not occur. To ensure this does not happen, plan to create the right type of will for you with an estate planning attorney.

Posted in Trusts, Wills | No Comments »

Top 3 mistakes people make with their last will and trust

Wednesday, May 4th, 2011

Learn from these mistakes you can’t afford to make

Your last will and trust is something that many people avoid dealing with until it is often too late.  And while there are many ways to go wrong with your last will and trust, but here are three common mistakes that many people make:

#1 – Not having a last will and trust

Many people think that if their assets are not significant enough to merit a will and/or trust, but this is not true. No matter how big or small your estate is, drafting a last will and/or trust will ensure that your assets go to the heirs you choose and, where appropriate, are protected from unnecessary taxation.

#2 – Not updating wills or trusts as life progresses

Whether you change jobs, acquire assets, get married, or have a child, your will and trust should be updated to reflect these events. Without an up-to-date will, it will be nearly impossible to ensure that your loved ones are cared for and your assets preserved or transferred as you intended.

#3 – Forgetting about taxes

This is a common mistake for those who try to do their will and trusts on their own, without consulting a professional. It is easy to overlook certain taxes or other fees that may be charged to your estate after you pass away, leaving your heirs or your executor with the unpleasant task of addressing these bills. However, with an experienced estate planner, you can structure your estate to minimize the taxes that are due while ensuring that the funds are available and allotted for the necessary taxes.

Posted in Trusts | Comments Off

What is a Pour Over Will?

Tuesday, April 6th, 2010

A Pour Over Will is the type of Last Will and Testament that accompanies a Revocable Living Trust.  As wills go, this type of will is relatively simple since most of the complicated details are specified in the Revocable Living Trust.  For the most part, a Pour Over Will only has one beneficiary.  That beneficiary is the Revocable Living Trust which was created at the same time.  Of course, if the Trust has been funded correctly, very little will pass through this will.  The Pour Over Will simply serves as a safety net to capture any assets which have not been transferred to the Trust prior to death.  Also, if minor children are involved, the Pour Over Will can also be used to name potential guardians in the event of the deaths of both parents.

(more…)

Tags: , , ,
Posted in Estate Planning, Trusts, Wills | Comments Off

Differences between a Will and a Living Trust

Monday, March 15th, 2010

When looking at legal documents regarding distribution of property and your assets after death, you will find a last will and testament and a living trust.  These two documents are not the same, although they both deal with the distribution of your property after your death.  Deciding which one is best for your estate can be tricky, and it’s important that you understand the differences between the two.

(more…)

Tags: , , , ,
Posted in Trusts, Wills | Comments Off

What is a Living Trust?

Saturday, March 6th, 2010

If you are not familiar with legal terms and if you haven’t seriously thought about your will and other, similar documents, you may not know what a living trust is.  A living trust is a binding legal document that you create while still alive for one of two reasons: to avoid probate, or to save money when it comes to taxes.  Creating a living trust also guarantees that your properties will not go to probate proceedings, saving your heirs a great amount of time and trouble.  You’ll also help protect your financial privacy and set out guidelines for the distribution and use of any assets if you become unable to handle matters yourself. A living trust may be revoked by the creator, also called the Grantor, at any time.

(more…)

Tags: , , ,
Posted in Estate Planning, Trusts | Comments Off

Setting up a Living Trust

Wednesday, January 6th, 2010

Setting up a living trust is one way of protecting your property and assets from going through the probate system upon your death.  This can save your heirs a lot of time and money.  Creating a living trust is actually fairly easy, although there are a few things that you need to keep in mind.  The first is that the trust documents must follow the laws of the state in which they are written.  Living trust laws do vary from state to state, so you will need to speak to a living trust attorney to make certain your document follows state law.  Once written, you have to execute the living trust in order to make it legally binding.  Below are the steps to setting up and executing a living trust.

(more…)

Tags: , ,
Posted in Trusts, living trust | Comments Off

« Older Entries