At Easler Law, our experienced attorneys can help you create wills and trusts that meet your unique needs. No matter your situation, we can help you protect your assets and ensure that your wishes are carried out according to your specifications with a properly prepared will, trust, or estate plan.
The Purpose of a Will or Trust in Estate Planning
The Purpose of a Will in Estate Planning
Most people believe that the primary purpose of a will is to designate who will receive their assets upon their death. While this is a vital role of a will, it is not the only reason to have one. A property prepared and executed will also allow you to name a guardian for your minor children, appoint someone you trust to handle your estate, and make final arrangements for your funeral or cremation.
Creating a will is one of the best ways to ensure that your wishes are fulfilled after death. If you die without a will, your assets will be distributed according to state law, which may not align with your wishes. Additionally, the court will appoint a guardian for your minor children, which may not be your first choice.
Creating a will is a simple and affordable way to ensure that your wishes are carried out and that your loved ones are taken care of after you're gone.
The Purpose of a Trust in Estate Planning
A trust is a legal entity that can hold assets on behalf of another person, known as the beneficiary. Trusts are often used in estate planning to help manage assets, minimize taxes, and avoid probate.
There are many different types of trusts, but they all have one common purpose: to give the trustee (the person managing the trust) flexibility in how the assets are used for the benefit of the beneficiary. For example, a trust could be used to provide income for a beneficiary's education or health care expenses. Or, a trust could be created to hold assets for a minor child until he or she reaches adulthood.
Remember, trusts can be either revocable or irrevocable. A revocable trust can be changed or canceled anytime, while an irrevocable trust cannot. A property prepared and executed trust is a valuable tool in estate planning and can achieve many different goals.
When Should People Consider Creating a Will or Trust
People should consider creating a will, trust, or estate plan any time they want to have more control over their assets and how they are distributed after death or have a change in life, such as marriage, divorce, children, dependant adults, or even buying or adopting a new pet.
Estate planning is not just for the wealthy. Everyone can benefit from having a will or trust and other estate planning documents such as a Durable Power of Attorney, Advance Directive, and Beneficiary Designations.
Types of Estate Planning Trusts
There are many different types of trusts that can be used for estate planning. The type of trust you create will depend on your goals and objectives.
Here are some common types of trusts:
Revocable Living Trusts: A revocable living trust is a type of trust that can be created during your lifetime and revoked or changed at any time. Revocable living trusts are popular because they offer flexibility and can be used to avoid probate.
Irrevocable Trusts: An irrevocable trust is a type of trust that cannot be changed or revoked after it has been created. Irrevocable trusts are often used for asset protection and to minimize taxes.
Testamentary Trusts: A testamentary trust is a type of trust that is created through a will and only goes into effect after the death of the person who created the will (known as the testator). Testamentary trusts are often used to provide for minor children or grandchildren.
Special Needs Trusts: A special needs trust is a type of trust that is used to hold assets for someone who has a disability. Special needs trusts help ensure that the beneficiary is still eligible for government benefits, such as Medicaid.
Charitable Trusts: A charitable trust is a type of trust that is used to donate money or property to a charity. Charitable trusts can provide a lifetime income for the beneficiaries and offer tax advantages.
Pet Trusts: A pet trust is a type of trust used to provide for the care of a pet after the owner's death. Pet trusts can be either revocable or irrevocable.
What Information is Needed To Prepare a Will or Trust
When you sit down with an attorney to prepare a will, he or she will ask you questions to get to know you and your family situation better. Some of the information that will be needed includes:
Your name, address, and date of birth
Your spouse's name, address, and date of birth (if married)
The names and addresses of your children and their dates of birth
The names and addresses of any other beneficiaries named in the will or trusts, such as charities or friends
The names and addresses of any executors or trustees named in the will or trust
A description and list of your assets, including real estate, bank accounts, stocks and bonds, life Insurance policies, and other valuables
This is just a general list an attorney will ask you; however, depending on the answers to these questions, they may ask additional, more detailed questions.
Never Use a Do-it-Yourself Website
A will or trust is a legal document, and as such, it must meet specific requirements to be valid. If even one of these requirements is not met, your will or trust could be declared invalid by a court.
While you may be tempted to create your will or trust using a do-it-yourself will kit or online service, this is not recommended. They are simply too high to take chances with a do-it-yourself will to save a few hundred dollars.
Here are some other reasons why you should never do it yourself when it comes to a will, trust, or any estate plan:
A do-it-yourself-will kit or website cannot provide the same level of protection as an experienced estate planning attorney or replace their advice, experience, or local reputation.
Attorneys usually keep copies of the original documents; originals are essential if your will is contested.
DIY websites usually provide false security and disclaim liabilities (read the fine print), while an attorney carries malpractice insurance.
A will or trust may not be valid in another state if you move.
A will or trust may not be valid if you marry, divorce, or have children.
Online will and trust kits are not personalized to your unique needs and goals.
As the saying goes, "you get what you pay for!"
Creating a will or trust is not something you should try to do on your own; it's just not worth it. How do we know? We also probate estates when wills and other documents are invalid.
When is The Right Time to Hire an Attorney
The best time to hire an attorney is before you need one. That way, you can have peace of mind knowing that your affairs are in order and will be handled according to your wishes.
It's never too early to start thinking about estate planning, and it's always better to be prepared than not. If you don't have a will or trust, now is the time to create one, and if you already have a will or trust, now is the time to review it and make sure it still meets your needs.
Remember, estate planning is not just for the wealthy. Everyone can benefit from having a will or trust and other estate planning documents such as a Durable Power of Attorney, Advance Directive, or Lady Bird Deed.
