Planning for the future can be overwhelming and intimidating, especially if you are unsure how to proceed. You want to get your legal and financial affairs in order for those you will leave behind, but where do you start? What do you need to know about estate planning today to take care of your loved ones when you are no longer around?
While the best option is to consult a will, trusts, and estate lawyer for expert, personalized advice, let us help you get started by answering these seven commonly asked questions about estate planning.
What Is a Will?
A will is a legal document that lets you direct how you want your assets distributed among your beneficiaries after you pass away. This includes identifying who manages and distributes your assets, who will receive which assets, and who will become your minor children’s legal guardians.
Put simply, a will allows you to ensure your property, funds, and personal belongings will be distributed the way you want them.
What Is a Trust?
A trust is a legal arrangement that holds your assets while you are alive and directs how they will be divided up after your death. Here, you give an individual – the trustee – the authority to manage the assets placed in the trust according to your wishes when you are no longer around.
With this, the trustee you choose has the duty to oversee the trust assets according to the trust and in the best interests of your chosen beneficiaries.
An estates, wills, and trusts lawyer can help you successfully place your assets in a trust. This saves your heirs from having to undergo the expensive, stressful, and time-consuming probate process after you pass away.
What Is the Difference Between a Will and a Trust?
Wills and trusts are legal estate planning documents with the same goal: to let you control what happens to your estate assets or who takes custody of your kids after you die. However, one significant difference they have is when they take effect.
Wills do not go into effect until the will-maker passes away. On the other hand, trusts become effective as soon as the grantor – the person who creates the trust – signs and funds it.
Finally, with a will alone, property and assets must be probated first before they can be divided among the beneficiaries. However, with a trust, beneficiaries can efficiently receive what you want to give them without going through probate.
What Is a Probate?
Probate is a court-supervised proceeding wherein the court validates a will and distributes the will-maker’s assets according to their wishes.
During this process, the probate court generally does the following:
- Ensure that the will is valid and acceptable.
- Appoint the executor named in the document.
- Notify the interested parties.
The executor also plays a key role as he or she is tasked with the following:
- Locating and taking inventory of the assets.
- Settling debts on behalf of the estate.
- Distributing remaining assets to the beneficiaries or according to state law.
- Closing the estate once all debts have been paid and all assets have been distributed.
What Happens if Someone Dies Without a Will?
With a will, you can choose who to leave your property to – whether it be your spouse, your children, a chosen charity, etc.
However, if you pass away without a will, the state will determine who receives your assets. This law is known as the Intestacy Statute, and it favors your closest relatives. For example, if you are married with children and pass away without a will, half of your assets will go to your spouse. The remaining half will be split evenly among your children.
Most importantly, your family will have to go through probate. Without a will, they may face challenges from individuals who claim they are rightful heirs, potentially making the process messier for everyone involved.
Do Wills Have To Be Probated by the Courts?
Generally, a will has to go through probate to finalize the decedent’s affairs and ensure all his or her wishes are followed. Probate can also occur if a person dies without a will in place.
In addition, probate becomes necessary in the following situations:
- If the beneficiaries are not properly named.
- If they refuse the inheritance.
- If they cannot be located.
- If they pass away before the will-maker.
Probate can be time-consuming, complicated, and stressful for your loved ones. It also entails legal fees that can significantly increase throughout the proceeding.
The good news is that there are ways to avoid probate, like placing your assets in a trust. A wills, trusts, and estates lawyer can guide you through the methods available to you and your unique situation.
Do I Need a Lawyer To Write Up My Will?
You technically do not need one to compose a will. However, lawyers for trusts and wills can offer helpful advice and guide you through the best estate planning strategies for the legacy you want to leave.
They can also walk you through making a will, so you don’t commit common mistakes, such as not signing the document or not getting it witnessed correctly.
Ultimately, a lawyer for wills and trusts offers services and legal expertise that are extremely helpful if you have a large estate or deal with complications such as having assets in multiple locations.
Get Personalized Answers to Your Questions About Wills and Trusts Here
Wills and trusts enable you to leave something behind for your loved ones after you pass away, but they can be complicated to set up. Fortunately, reading up on the frequently asked questions about these estate planning documents can help you get started on the right track.
If you want to take another step toward protecting your assets, the experienced lawyers for trusts and wills at Wiles Law are here to answer any inquiries you may have about estate planning.
Complete this form or contact us at (843) 718-0232 to schedule a free consultation. We look forward to helping you leave a great gift to your loved ones in the quickest, most painless way possible.