How is a will different from a living trust and how is specific property devised?
Full Question:
Answer:
VA-WIL-01556 on our website is a Last Will and Testament. Since it pertains to a married person with minor, it contains a trust section. The trust provisions are applicable if at the time of the testator's death, the other parent is also deceased or unable to care for the children. This is different than a living trust where property is placed in the trust during your lifetime.
A living trust is a trust established during a person’s lifetime in which a person’s assets and property are placed within the trust, usually for the purpose of estate planning. The trust then owns and manages the property held by the trust through a trustee for the benefit of named beneficiary, usually the creator of the trust (settlor). The settlor, trustee and beneficiary may all be the same person. In this way, a person may set up a trust with his or her own assets and maintain complete control and management of the assets by acting as his or her own trustee. Upon the death of the person who created the trust, the property of the trust does not go through probate proceedings, but rather passes according to provisions of the trust as set up by the creator of the trust.
A Living Trust is an effective way to provide lifetime and after-death property management and estate planning. When you set up a Living Trust, you are the Grantor; anyone you name within the Trust who will benefit from the assets in the Trust is a beneficiary. In addition to being the Grantor, you can also serve as your own Trustee (Original Trustee). As the Original Trustee, you can transfer legal ownership of your property to the Trust. This can save your estate from estate taxes when you die. Just remember that it does not alleviate your current income tax obligations.
The section of the Will regarding specific property allows you the opportunity if you so choose, to designate specific items to specific people. Sometimes parents use that provision to divide jewelry or other valuable things that are intended to be heirlooms. Articles V and VI of the Will are the default provisions where the remainder of your estate, except the homestead, is devised to your spouse (Art. V) and anyone else named if your spouse predeceases you (Art. VI).
