Quick Guide To Wills And Trusts

A will and a trust are two important estate planning tools that can help you ensure that your assets are distributed according to your wishes after you die.

A will is a legal document that states who you want to inherit your assets and how you want them distributed. A trust is a legal arrangement that allows you to transfer ownership of your assets to a trustee, who will manage them for the benefit of the beneficiaries you designate.

Wills

Why do you need a will?

A will is important for a number of reasons. First, it ensures that your assets are distributed according to your wishes. If you die without a will, your assets will be distributed according to the laws of intestacy, which may not be what you want.

Second, a will can help you avoid probate, which is the legal process of distributing a deceased person’s assets. Probate can be time-consuming and expensive, so avoiding it can be beneficial for your loved ones.

What does a will include?

A will typically includes the following information:

• Your name and address
• The names and addresses of your beneficiaries
• A description of the assets you want to leave to each beneficiary
• The names and addresses of your executor and trustee (if you have one)

How do you create a will?

You can create a will yourself or you can hire an attorney to help you. If you decide to create a will yourself, be sure to follow the instructions carefully. A will is a legal document, so it’s important to make sure that it is valid.

Trusts

Why do you need a trust?

A trust can be beneficial for a number of reasons. First, it allows you to control how your assets are managed and distributed after your death. Second, a trust can help protect your assets from creditors and lawsuits. Third, a trust can be used to provide for the needs of minor children or disabled beneficiaries.

What are the different types of trusts?

There are many different types of trusts, but some of the most common include:

• Testamentary trusts: These trusts are created in your will and take effect after your death.
• Living trusts: These trusts are created during your lifetime and can be used to manage your assets while you are alive and after you die.
• Revocable trusts: These trusts can be changed or revoked at any time during your lifetime.
• Irrevocable trusts: These trusts cannot be changed or revoked once they are created.

How do you create a trust?

To create a trust, you will need to create a trust agreement. This is a legal document that outlines the terms of the trust, such as the assets that will be held in the trust, the beneficiaries of the trust, and the powers and duties of the trustee.

You can create a trust yourself or you can hire an attorney to help you. If you decide to create a trust yourself, be sure to follow the instructions carefully. A trust agreement is a legal document, so it’s important to make sure that it is valid.

Tips from Doug

• Don’t put off creating a will or trust. It’s never too early to start planning for your estate.
• Get professional help if you need it. A lawyer can help you create a will or trust that meets your specific needs.
• Keep your will and trust up to date. As your life changes, you may need to update your will or trust.
• Talk to your loved ones about your will and trust. Let them know who your beneficiaries are and what your wishes are for your assets.

FAQ

What is the difference between a will and a trust?

A will is a legal document that states who you want to inherit your assets and how you want them distributed. A trust is a legal arrangement that allows you to transfer ownership of your assets to a trustee, who will manage them for the benefit of the beneficiaries you designate.

Do I need a will?

Yes, everyone should have a will. If you die without a will, your assets will be distributed according to the laws of intestacy, which may not be what you want.

Do I need a trust?

A trust may be beneficial for you if you want to control how your assets are managed and distributed after your death, or if you want to protect your assets from creditors and lawsuits.

How do I choose a trustee?

The trustee should be someone you trust to manage your assets and distribute them according to your wishes. The trustee should also be someone who is responsible