Do I need a will or a living trust? Estate Planning.

Everyone should have a plan to ease things for those left behind if you die unexpectedly.  If you have any specific desires for your who your children go to, who gets your things then you need a will or a living trust.  Confusingly, a living will is a legal document to inform doctors of your wishes if you are on life-support with little chance of recovery, and has nothing to do with your estate.  Many people think of an estate as simply property, but taking care of your estate includes:

·        Who will take care of any minor children

·        Deciding who will take care of unpaid bills and taxes

·        Your wishes for your burial or cremation  

So how do you decide whether I need a will or a living trust?

A will is a legal document where you state what you want done with your estate after you die.  A will goes through probate court and is made public as all probate court documents are. 

A will must be signed by two or three witnesses, and it’s a good idea to have it notarized.  If there is any chance a will might be challenged, or if there are complicated business assets, it’s best to have an attorney prepare it.  The maker of the will is a <em>testator</em>.

A living trust is a document where you give ownership of some or all of your property to a person or organization, but you retain possession until your death.  A living trust does not go through probate, so your assets and debts will not be made public. 

A trust involves a lot more paperwork, but has the advantage of dispersing your estate without going through a court.  This means there is no delay in the transfer.  Your living trust must be notarized.

The biggest disadvantage of a living trust is that all property must be transferred to the trust and accurate records must be kept, and kept up.  Ownership of property is transferred to the trust.  Car titles, bank accounts, deeds, whatever you are designating to the trust must have legal transfer of title.  If some property is not designated to the trust, then it’s fate is uncertain.  It is a good idea to have a will also to cover anything missed in the living trust.  The maker of a trust is a grantor.  The trustee is the one who has control of the property.  This is usually you until your death, then there is the successor trustee.

Disclaimer: This website is not equivalent to legal advice, and should not be relied upon as such. Any specific questions concerning your legal rights should be presented your attorney.