Estate Planning
Wills and Trusts each have their Advantages and Disadvantages. For example, a Will allows you to name a guardian for your children and to specify funeral arrangements, while a trust does not. On the other hand, a Trust can be used to plan for disability or to provide savings on taxes.A WILL (Last Will and Testament):
- Passes through probate
- Become a matter of public record when they’re submitted to the court for probate
- Allows you to name a guardian for your children
- Specify funeral arrangements
- Goes into effect after you die
- Directs who will receive your property at your death
- Appoints a legal representative to carry out your wishes
- Covers any property that is solely in your name at the time of your death
- DOES NOT cover any property held in joint tenancy or in a trust
- If you die without having made a will, you have died intestate. In that case, the court will distribute your property and determine the beneficiaries. Further, without the guidance of a will, the court will name the guardian for your minor children.
LIVING WILL
A living will bears no relation to a conventional will and is not used to leave property at death. A living will is a document that allows you to state what type of medical treatment you do or do not wish to receive should you be too ill or injured to communicate your wishes.POUR-OVER WILL
A pour-over will “pours over” property into a trust when you die. Property left through the will must go through probate before it is placed into the trust.TRUST
- A trust takes effect as soon as you create it
- Can be used to begin distributing property before death, at death or afterwords
- Covers only property that has been transferred into the trust
- Passes outside of probate and remains private
- Can be used to plan for disability or to provide savings on taxes