TRUST AND ESTATE PLANNING
Did you know?
More than 50% of U.S. Adults over the age of 45 do not have a Will or Trust.
What is a Living Trust?
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A Living Trust is a written document that places your assets into a Trust. This Trust becomes effective immediately upon its creation.
Under the Trust document, a Trustee is appointed (typically the person who created the Trust). The Trustee controls the Trust and the property contained in the Trust. The Trust document specifies exactly how your assets shall be distributed upon your death.
By having a Living Trust in place your beneficiaries will avoid probate and inherit your assets instantly upon your death.
What is a Will?
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A Will, also known as a Last Will and Testament, is a written document that outlines how a person’s assets and property should be distributed after their death. It also allows you to appoint a guardian for minor children and an executor to manage the distribution of assets.
Without a Will, the distribution of assets is determined by state law, which may not align with the individual’s wishes.
Keep in mind, a Will does not avoid probate nor does it exempt the estate from going through the legal process.
A Comprehensive Estate Plan is the most common strategy for those who have assets and are parents of children who will one day inherit your estate. A comprehensive estate plan includes: Pour-over Will, Revocable Living Trust, Durable Power of Attorney, and a Advance Healthcare Directive.
Comprehensive Estate Plan
A Recovable Living Trust (also called a “Revocable Trust” or “Living Trust”) is a document that once official you will able to place your assets into the Trust and to avoid them from being tied up in probate upon your death. Assets held in a Trust are considered “non-probate property”. Since Trusts don’t need to be filed in probate court, they offer more privacy. Revocable Living Trusts allow you to change your terms if you change your mind.
Revocable Living Trust
A Will is a document that provides specific instructions for the distribution of your property upon your death. A Will becomes effective upon death of the individual who created the Will. In addition, a Will may contain other provisions to ensure that your wishes are included in the document, such as specific last requests and guardianship of children. A Will allows for the appointment of an Executor who will distribute the property according to the provisions in the Will. A Will must be signed and witnessed. A Will can be changed at any time prior to your death. Upon your death, a Will usually goes through Probate.
Last Will and Testament
A Medical Directive is composed of two essential legal documents: A Medical Power of Attorney and a Living Will. The Medical POA designates someone to make healthcare decisions on your behalf when you are unable to do so. The Living Will states your wishes regarding medical orders and end-of-life care.
Medical Directive
The two types of POAs that are most common in estate planning are: Durable (Financial) Power of Attorney and Medical (Healthcare) Power of Attorney. Both allow you to designate someone to have legal authority over your affairs, usually healthcare and financial matters if you become incapacitated or cannot make decisions.