Determining whether you need a will or trust
Full Question:
Answer:
I am prohibited from giving legal advice. The answer will depend on all the facts and circumstances involved. Important tax considerations will be a factor. I suggest contacting a local retirement planner or tax professional who can review all the facts and documents
involved.
Generally, a person states his wishes about being his life prolonged by artificial means in a living will. This is typically a separate document from a testamentary will. It may also be combined with a power of attorney for health care, in which a person is appointed to make medical decisions for you if you are unable to do so.
A testamentary will is used to direct how one's estate should be disposed of. A will, such as many wills offered on our site, may also contain a provision for appointing a guardian for minor children. A trust may also appoint a guardian for minor children. A will does not
take effect until your death. A living trust is a manner of transferring property that is effective immediately. A testamentary trust may also be created in a will, so that rather than giving money outright to a minor or other heir, a trustee is responsible for handling disbursements
according to the conditions specified in the trust.
A trust is often used for estate planning in order to avoid the probate process. When you die and your estate enters probate administration, the court will oversee how your property is transferred. When you create a living trust, there are administrative steps you have to take while living in order to transfer your property into your trust. With a will, once you create your will and properly sign it, you will normally not have any need to take any more steps to ensure your wishes are carried out at your death.
