Last Updated on October 16, 2022 by
The key is to make sure you understand the difference between a Will and a Living Trust. The answer is yes, you can have both a Will and a Living Trust because they perform two distinct functions. During one’s lifetime, trusts manage and distribute one’s assets.
Wills, on the other hand, allow you to make provisions for your kids, name an executor for your estate, and express final intentions. So, what’s important to grasp is the sort of Will – or Living Trust – that you’ll need to create the most comprehensive Estate Plan.
Let’s assume you have a Last Will as well as a Living Trust. This isn’t always a good idea, because the assets covered solely in your Last Will almost certainly go through a lengthy probate procedure. Not to mention that Last Wills are public records.
The Pour Over Will is a special kind of Will that allows you to direct your assets via a living trust. The most common Living Trusts (including the one you may purchase through Trust & Will) include a Pour-Over Will, which is a type of Will intended to work in tandem with your Trust. At the time of your death, anything owned
While the last will are used in the United Kingdom, a Pour-Over Will (and yes, we know the names can get confusing) is employed in Australia. A Living Will is a collection of papers concerning an individual’s medical decisions. The following documents are among those included:
- POA is a legal document that allows you to name someone as your proxy.
- Directive for Good Healthcare in Later Life
- HIPAA Authorization Form
Do Wills Require Probate?
Understandably, taking the time to write a Will may make you feel as though your estate will go through probate, but it doesn’t always happen. Probate is the procedure your estate goes through after you die if you haven’t done adequate or thorough Estate Planning. It’s a court-supervised process that can be both costly and lengthy
However, there are many methods to streamline or even eliminate the probate procedure. One of the most effective strategies to make things simpler for those you leave behind is to establish Trust in your Estate Planning. By establishing a Trust, you can pass anything you include into it down without going through probate. A significant advantage of setting up a
When do Trusts and Wills go into Effect?
Will do not take effect until you pass away. In contrast, a Trust is effectively in place the moment you sign and fund it.
Wills After Death
When you pass away, your last will becomes effective. As a result of this, the court must be notified to begin the probate process. The following events to settle your estate and distribute property and assets can take a long time and be costly.
Another (rather large) consideration to keep in mind is that, because your Will only takes effect after you die, if you become disabled and unable to make decisions for yourself, you have no means of redress or plan as outlined in your Will. A Will is essentially useless while you are living.
Trusts Impact Life and Death
Because a Trust becomes effective right away once you sign it, it can make the process simpler for those around you. However, your Trust goes beyond simply anticipating after your death by including provisions to have an impact while you are still alive.
The term “Trust” refers to a legal instrument that allows you, as the creator of the Trust, to define what should happen if you become incapacitated and unable to make your own decisions. It protects those close to you from having to make unthinkable decisions. Most significantly, a Trust can ensure that your wishes are made known throughout your lifetime and after
There are many moving pieces to this puzzle, and it’s all too easy for individuals to think, “I’ll get to it later…” This is risky. If you become unable to make decisions on your own and don’t have a strategy in place, your loved ones will be forced to shoulder the burden and stress of making choices for you while hoping
Fortunately, you are not alone. Wilson Browne is always there to help you. They will work with you to select the ideal Estate Plan for your needs, keeping your objectives in mind.
