Wills
A Will is a legal document that upon your death, states who is to receive personal assets, who will be your personal representative for the distribution of assets, and who will be the guardian and conservator for you minor children if both parents are no longer living. Unlike trusts, a will only becomes effective upon death and not during the lifetime of the person making the will. To be considered a valid will, the signing and certain provisions of the will must meet certain requirements.
Even though the law allows you to prepare your own will, it is advisable to consult with an attorney. If the will is determined to be invalid, your wishes in your will may not be followed.
Trusts
Trusts are an increasingly common document used in estate planning. Specific trusts vary but the purpose is to state how your assets are to be distributed. The trust creates a fiduciary duty between you and the trustee where the trustee holds title and manages the trust assets. The trust assets are then distributed upon your death according to your instructions in the trust.
Trustee
A trustee is someone or a company to manage your Trust. The trustee can be you during your lifetime. Whomever you choose, the trustee should be someone you have confidence in to follow the terms of your trust. If needed, an attorney can assist the trustee in carrying out the trustee’s duties.
Minor Children
Usually, you do not want to leave your assets to your children if they are minors. You may want to delay final distribution of all of the trust assets to your children until they have reached a certain age after 18, such as age 25. Your trustee will manage and distribute the trust assets for your children according to your trust.
Avoids Probate
Because the trust is private, your assets can be distributed to your heirs without the involvement of the Probate Court. Sometimes a probate can delay the distribution of assets and can be expensive. Determining the best trust for your family should be discussed with an attorney because the decision can be complex depending on your specific goals.
Pour-Over Will
Usually, estate planning using a trust will also use a “pour-over will.” The will is used if there is an asset that was not placed in the trust and requires probate. The assets in the will usually will be distributed to the trust in the probate and then distributed according to the trust. This will can also contain provisions for minor children.