Estate Planning Documents, Wills & Living Trusts

18-Aug-2021

Estate Planning Documents, Wills & Living Trusts

What are trusts? Why have one?

A  Trust is a legal form that places, typically your largest assets in trust for your safety (asset protection) during your life. Then, details where you’d like these things to go after you are gone. A revocable trust can be amended at any time during your life as well, but become irrevocable after you pass.

You name yourself/spouse as the trustees and remain in control. One difference from a last will & testament is that you also name a ‘successor -trustee’ who will be your agent or executor of sorts. They will allocate assets as you wished.

In the even you become ill and unable to make decisions, your successor can act on your behalf, handling whatever may arise. It’s all clearly spelled out and, unlike a will, can be handled without any involvement by the courts.

This ability to avoid government interference is  the main benefit of this type of estate planning, though often overkill in small estates whereas a lady bird deed is most suitable. A will has to go through probate, which is a time consuming process (that can be contested) used to value your estate, settle any debts, pay taxes and transfer assets to your designated beneficiaries. Any assets that are registered only in the name of the deceased must go through probate.

Another plus of trusts is they can stay private. A will & testament, when recorded, is a public document, open for any to potentially contest. Probate itself is open to public view, so anyone can see the details of your estate. In contrast, a trust document is private, generally more difficult to challenge, and avoids probate courts altogether.

When setting up a trust most people opt to do an advance directive ( living will)  last will, DPOA, & healthcare proxy.  After execution of documents you may want a QCD to put any real property into the estate, as well as open other accounts in the trusts name. Financial products like life insurance, Annuities & so forth you may additionally want to have the estate listed as the benefactor.

We offer many of the legal forms mentioned here available for download as well as prepared. We can offer information but not legal advice.