Dave says: What’s best for me?
Dear Dave.
I spoke to a few friends about trusts and wills the other day. Can you clarify for me what they said? I have no will or trust and my financial situation seems to be pretty straightforward. I just want to make sure I do the right thing.
William
Dear William,
This is a great question. Your friends are probably smart people, but I am glad that you want to know more. I am not a lawyer so I will just give you some simple things to consider. Also, I’d strongly suggest you talk to an experienced will and trust lawyer, one with the heart of a teacher, who will give you all the facts and put your best interests first.
Basically, a will is a legal document that explains what you want to happen with your stuff when you die and puts it all in writing. For most people, a simple estate plan is enough to protect your family in the event of an unexpected death. There are several types of wills. Trusts come in many different forms, including living trusts. They can also be irrevocable or revocable. If you don’t have more than $1,000,000 in assets, and your financial life is simple and straightforward, then a will is the best option. In a will you can name a guardian for your minor children, but not in a trust. A trust allows you to avoid probate court, but a will does not. The probate court can take a long time. They can also be very expensive. Your family may have to wait months in court if someone contests the will and your estate is thrown into probate court. Nobody wants to experience that. While we’re on the subject of probate court, let’s talk about another sticky subject.
There’s a little bit of crazy in every family. If you’re not sure, you might be the one. Wills are the best option for families who struggle with tension and family issues. The probate court can solve these problems. If you are wondering if it is possible to have both a will and a trust at the same time, then the answer is yes. In fact, most people who have a trust have a will, too.
I hope this little bit helps!
–Dave
