WLLS AND ESTATES 

Do you need a Will or A Trust?

The purpose of a will is to provide instructions on how a person’s assets should be distributed after their death. A will is a legal document that sets out a person’s wishes for their property and other assets, including money, real estate, and personal possessions.

  

In all instances, your estate will go through probate (a court proceeding) unless you have a trust. There are some exceptions.

 

Here are some of the key purposes of a will:   

  

1. To distribute property: One of the main purposes of a will is to ensure that a person’s property is distributed according to their wishes after their death. A will can specify who should receive specific assets, how much they should receive, and when they should receive them.
2. To appoint guardians: If a person has minor children, a will can be used to appoint a guardian to care for them in the event of the person’s death.
3. To minimize taxes: A well-drafted will can help minimize estate taxes by taking advantage of tax exemptions and other strategies.
4. To avoid disputes: A clear and comprehensive will can help avoid disputes among family members and other heirs over the distribution of assets.
5. To create trusts: A will can be used to create trusts for the benefit of specific individuals or organizations, such as charities.
6. To appoint an executor: A will can appoint an executor to manage the distribution of assets and ensure that the person’s wishes are carried out.

Overall, a will is an important legal document that can provide peace of mind and ensure that a person’s wishes are respected after their death. It is recommended that everyone have a will, regardless of their age or financial situation.

 

Why do you need a Trust instead of a Will.

The purpose of a trust is to manage and protect assets for the benefit of one or more beneficiaries. A trust is a legal arrangement in which a trustee holds and manages assets on behalf of the beneficiaries, according to the terms of the trust document.

Here, you circumvent probate and the attorneys fees incurred going through probate. 

   

Here are some of the key purposes of a trust:   

 

1. To provide for the needs of beneficiaries: A trust can be used to provide financial support for beneficiaries, such as children, elderly parents, or other family members.
2. To avoid probate: Assets held in a trust can pass directly to beneficiaries without going through the probate process, which can be time-consuming and expensive.
3. To minimize taxes: A well-structured trust can help minimize taxes by taking advantage of tax exemptions and other strategies.
4. To protect assets from creditors: Assets held in a trust can be protected from creditors, lawsuits, and other claims.
5. To provide for charitable giving: A trust can be used to support a charitable cause or organization, while providing tax benefits to the donor.
6. To manage assets for individuals with special needs: A trust can be used to manage assets for individuals with special needs, ensuring that they have financial support and access to services and resources.

Overall, a trust can be a powerful tool for managing and protecting assets, providing for the needs of beneficiaries, and achieving a wide range of financial and estate planning goals. Trusts can be tailored to meet the specific needs and goals of individuals and families, and it is important to work with an experienced attorney to ensure that the trust is structured properly and meets all legal requirements.

 

Why would you choose a Trust instead of a Will.

Therefore there are several reasons why someone might choose to draft a trust instead of a will: 

 

1.  Avoiding probate: Probate is the legal process of administering an estate after someone dies. It can be time-consuming and expensive. A properly funded trust can help assets pass outside of probate, which can save time and money for the estate and beneficiaries.
2. Maintaining control: A trust can give the grantor (the person creating the trust) more control over how assets are distributed after their death. For example, a trust can specify how assets are distributed over time or under certain conditions. This can be useful if the grantor has concerns about how beneficiaries will manage their inheritance.
3. Providing for incapacity: A trust can provide for the grantor’s care and management of their assets if they become incapacitated. A will only takes effect after someone dies, so it cannot provide for this.
4. Privacy: A trust is a private document, whereas a will becomes a public record when it is filed with the court after someone’s death. If the grantor values privacy, a trust may be a better option.
5. Flexibility: A trust can be more flexible than a will. It can be designed to meet the grantor’s specific needs and goals, whereas a will is more limited in its scope.

It’s important to note that everyone’s situation is different, and there is no one-size-fits-all answer to whether a trust or a will is the best option. Please call the Attorneys at The Darvish firm who are experienced estate planning attorneys to determine which option is right for you.