It is important for everyone to plan what happens to their assets after their death. An estate plan is a compilation of documents that provide for how to handle your affairs. You have probably heard of living trusts and wills and wonder whether you should have both documents in place. The answer depends on your particular requirements and what you wish to accomplish with your estate plan. An experienced estate planning attorney will answer your questions and help guide you through the process of drafting an estate plan that works best for your circumstances.
What is a Living Trust?
A living trust is also called a revocable trust. It is an arrangement that includes various assets and allows you, as the grantor, to make changes during your lifetime. The living trust may include a variety of assets such as checking and savings bank accounts, money market accounts, investment accounts, and more. The grantor remains in control of the trust until their death. At that time, the trust belongs to the person or persons they named. A living trust is revocable, which means that the person may revoke it at any time if they choose. Generally, a living trust does not go through probate.
How is a Will Different From a Living Trust?
A will, or last will and testament, is a document that states your wishes for the distribution of your assets after your death. A will may also include additional information, such as the guardianship of minor children in the event of your death. When you create a will, you name the person who will administer the will, also called the executor, as well as the beneficiaries. It is important to note that a will must go through probate when the assets have a total value of more than $50,000. If you have few assets, your beneficiaries will not need to go through probate.
Should I Have Both a Living Trust and a Will?
A living trust and a will each serve specific purposes, some of which overlap. Each document may be part of your overall estate plan. Whether you need a living trust as well as a will depends on the specific details of your situation. Both wills and trusts can be adapted to accommodate the best tax advantages. If you have minor children, a will is essential because it provides for the appointment of a guardian to care for them if you die. However, a trust may also be beneficial in that situation because it will protect assets until the children are adults.
Your circumstances will determine whether you would be best served with a living trust, a will, or both. An experienced attorney will review your information and help determine your options. Your attorney will create an estate plan that will provide you and your loved ones with peace of mind. An estate plan should incorporate all your assets and take care of your loved ones after your death. It can be complex and, therefore, it is best to seek legal guidance from a skilled lawyer. To learn more about estate planning, contact our legal team at Moen Sheehan Meyer, Ltd. at (608) 784-8310 or online to schedule a consultation.
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A last will and testament is one of the essential parts of your estate plan and it is a document that every adult should implement. Luckily, it is not difficult to put a will in place to protect yourself and your loved ones in the event of your death.
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Here are answers to some of the common questions that people have about wills.
What Should I Include in My Will?
When it comes to your will, you are better off including too much information than not enough. Do not leave anything to interpretation. For example, name beneficiaries and specify exactly what property or assets they should receive, but also consider naming alternate beneficiaries.
How Can I Make Changes to My Will?
You should review your will every so often and make sure that it includes your current wishes. In general, you can make minor changes to your will with a document called a Codicil. However, when you make multiple changes over time and have several codicils in place, the result can be confusing. The more changes you make to an original document, the more possible it is to have misunderstandings. Your attorney should review the changes you want and may recommend that you replace the will with a new one if the changes are major.
Are Handwritten Wills Valid?
While some states allow you to use a handwritten will (also called a holographic will) Wisconsin law requires a will to be typed and properly witnessed and notarized in order to be valid.
When Should You Update Your Will?
You will undoubtedly enjoy many different milestones in your life. These milestones will be a mix of happy ones and sad ones. These milestones should lead you to do one thing each time you reach one: update your will. Simply creating a will and leaving it alone will not do you any good later.
Five Reasons You Need a Will
A will is an important document and is part of your estate plan. All adults should have a will in place, yet many people don’t have one. Here are five reasons why you should have a will.