Wills and Trusts

Wills

When you have a will-based estate plan, you will not avoid probate, but you will make things easier on your family. A will is a letter to the probate court with instructions on who gets your stuff when you die. Rather than having the court decide who will get your assets, having a will allows you to choose who will receive those assets and also who will take care of your children by selecting guardians for children who are minors.

If you have a will, you will also need a health care directive, power of attorney and HIPAA waiver to make sure that your family can take care of you if you become incapacitated.

Even having the most basic will may save your family on the costs of fighting over who gets your personal possessions. Contact our office today if you would like a free initial consultation to discuss whether preparing a will or revocable trust is right for you.

Trusts

When you create a Revocable Living Trust (also known as a Revocable Trust or Living Trust) to hold your assets, you become the “Grantor,” as well as the “Trustee” and the “Beneficiary.”  Assets transferred to a revocable trust remain in your control as the Grantor. The income from assets in the living trust is still reported on the grantor’s tax return.  You are free to buy and sell property in the revocable living trust and add and remove assets from the trust as you see fit. Think of a revocable trust just like a box that you put your assets into. Just like it sounds, a revocable trust can be changed, amended, or even cancelled during your life. You get to control everything about the revocable trust.

There are many reasons you might wish to create a revocable trust, but most people create them to avoid probate and the court system, protect beneficiaries from divorce and creditors, avoid taxes, and maintain privacy. When you have a trust-based estate plan, you will also have a pour-over will, health care directive, power of attorney and HIPAA waiver.