Wills or Trusts or Both?
Do I need a Will or a Trust or Both?
Whether or not a Will or a Trust or both is advisable depends on your present and possible future situations. Meeting with an Attorney to have all of your specific facts and wishes evaluated will allow you to have the correct documents tailored to your needs. However, parents with minor children definitely need Wills to name Guardians to care for their minor children, and a Trust in the Will to name trusted family members to hold, manage and protect the inheritance for the children.
When is a Revocable Living Trust recommended?
Those with estates valued at $500,000 or more, not counting retirement account or life insurance, should consider creating a Revocable Living Trust and having their assets properly transferred into that arrangement in order to cut the time, effort and cost of transferring their estate assets to their beneficiaries upon death. There is much stress to family members upon the death of a love done. This stress can be greatly reduced by passing assets on using the streamlined process of administration of a trust rather than going through all of the extra paperwork and procedures required in a court probate.
Can I take care of all of my assets without a Will?
Accounts and other assets may be transferred upon death by using joint tenancy co-ownership, by naming beneficiaries and by setting up beneficiary designations such as “payable on death” or “transfer on death.” It may seem that Wills are not needed by people who have taken care of all of their assets by using these methods. However, it is still advisable to have a Will just in case some unusual, unanticipated situations occur. An example would be dying in a car accident in which the other driver was at fault. In order to create legal authority for your estate to file a lawsuit for wrongful death, a legal representative for your estate would need to be appointed by a Judge. It would be better to have a prepared Will to name who you would prefer to be in charge of your estate and the lawsuit, and how the recovery would be distributed.
Protect what you’ve worked so hard to earn, and control your assets by creating a Will or a Trust or Both.