What does a Will Cover?
A will allows you to indicate how you want your assets like your bank balances, properties, or prized possession, to be shared. If you own a business or investments, your will can indicate who will get these assets and when.
In addition, a will also allow you to direct assets to a charity (or charities) of your wish. Also, if you wish to leave assets to certain institution or organization, you can do that with the help of this legal document.
While wills normally address a huge chunk of your assets, some aren’t covered by what is stated In this legal document. Those exclusions are payouts from the testator’s life insurance policy. Since the policy has designated beneficiaries, those people will get the proceeds. The same also goes for any investment accounts that are tagged as “transfer on death.”
There is a significant omission; if the beneficiaries of these assets predeceased the testator, the policy or account then goes back to the estate and is shared based on the terms of a will or, failing that, by a probate court; a part of the judicial system that takes care of wills, estates, including similar matters.
Most states have elective-share or community property laws that stops individuals from disinheriting their spouses. If a will sets aside a little portion of such assets to the surviving spouse than state law indicates, which is normally between 30% and 50%, a court may render the will null.
Aside from directing your assets, a will also help you designate an individual who will be charged with catering for your minor in the event of your death.
Importance of Having a Trust.
A trust is one of the most important estate planning documents. For this reason, it is important that you hire a trust attorney and set up a trust for your estate plan. Below are some of the importance of having this legal document.
- Reduce estate tax
If you have a spouse, a trust can help you save estate tax. In New York, for instance, a well drafted and administered trust can save a couple several thousand dollars in estate taxes on the death of the second spouse.
- Protect your minor children
A well set up trust can hold funds meant for your minor children until they are old enough to manage it themselves. A lot of individuals prefer to give the children access to monies staggered over a period of rim I.e., at ages 23, 26, 29, and 32.
- Keep your assets in the family
If peradventure, your child is getting married and you have something against her finance, its best you consider setting up a trust. If they eventually divorce, you do not want a portion of your assets ending up with your ex-son-in-law.
- Prevent probate
No one likes probate, especially the executors or beneficiaries of an estate. Probate is a complicated, time- consuming, stressful, and expensive process which must be avoided by all means. The best way to prevent probate is by setting up a trust. Contact a competent financial advisor or lawyer to help in this regard.
- Ensure your family’s privacy
The probate process is usually done in court which means that it will be open to the public. Public records will have details regarding your wills and other information like the value of your assets, including an inventory listing of your assets. A living trust, on the flip side, isn’t subject to public records, it is private.
Who is a Trust Attorney?
A trust lawyer is a lawyer who helps individuals set up trusts for their estate. This professional also provide advice and recommendations to individuals who wish to set up trusts. A trust lawyer can help you set up a trust that aligns with your wishes.
Who is a Will Attorney?
A will attorney is a lawyer that specializes in the creating of wills for individuals. These professionals have the experience, knowledge and resources needed to help you create a will that mirrors your wishes and adheres to the guidelines of the state government.
Always have it in mind that a judge can deem your will invalid if it believes that it wasn’t created using the laid down principles. If this happens, it means it would be assumed that you died intestate (without a will). So, to avoid this, ensure you hire a competent will attorney, New York.