Wills, Trusts, and Other Considerations
You have built a legacy over the course of your lifetime. A simple definition of legacy is something transmitted by or received from a predecessor the past. If you have acquired real estate, cash, and/or personal items, that is your legacy. Likewise, if you have taken time and actively served your community, that is your legacy. Both of these examples are something you may want to preserve.
No matter what your personal legacy might be, a will, a trust, or both may the best way to protect everything you have accomplished for the benefit of generations to come. Wills and trusts, while similar in some ways, are quite different from each other in purpose and design. How you wish to preserve your legacy, protecting the manner in which your instructions are followed, is the primary purpose of both a will and/or a trust. Take a look at a brief overview of each instrument to get a better idea of whether you should have a will, a trust, or both. Later articles will delve into the pros and cons of both wills and trusts.
What most people think of as a will is typically called a testamentary will, in legal terms. You may remember the term “last will and testament” used in movies or books. Well, that is the type of will addressed here. This type of protection of most of your assets allows you to bequeath certain items to friends or relatives. A will requires that all property be listed in the will. Should you hold any property jointly (with another person holding a share in the property), you can only assign your share of said property. In some instances, the care of minor children, and assets left to those children, can be directed by a will. The appointment of an executor is required, as are witnesses to the signature affixed to the will. The executor will represent your action during any probate hearings.
Trusts, on the other hand, can be more complicated and less personal than a will. Whether you decide on a revocable living trust (living will) or a testamentary trust (often coupled with a will). In a trust, you might not be able to leave your favorite Miro painting to a niece that admires the brushwork, if the painting is part of the trust. The trust, however, will protect other assets. Similar to the will’s executor, a trustee will be designated in the creation of a trust. The trustee can only follow the specific directions dictated by the trust. One of the primary functions of a trust is to provide relief for an estate or legacy allowing direct transfer to named beneficiaries, without the probate process. No personal bequeaths can be made unless written into the trust. Nor can a trust direct who would be responsible for the guardianship of either children or pets.
The absolute worst thing to do is nothing. Passing without either a will or trust in place allows your legacy to be declared intestate, with the courts and politicians of your state determining which (if any) of your survivors receives whatever the courts determine. DON’T MAKE THIS MISTAKE.