Common Estate Planning Tools: Wills And Trusts
If you are looking for a dependable firm, we have more than five decades of combined experience with creating wills and trusts. An Elizabethtown estate planning attorney from Cooper & Cooper Law Offices, PLLC, can help you with drafting a will or trust.
A will is used to select beneficiaries who will receive your property after you pass away. This is one of the most common estate planning tools and can be used to protect your assets from being handled by the state.
A will won’t go into effect until after you pass away, which means that you can designate guardians or heirs without losing any property during your lifetime. If you decide to create a living trust, you will be able to modify it while you are still living, allowing you to make necessary adjustments as time passes.
When you pass away, only then will your trustee be given control over it. Most people don’t need to create a trust unless they own a large amount of money or property. After reviewing your financial situation and long-term goals, we will help you determine which option is best for you.
Should I Create A Will Or Trust?
A will can do certain things that a trust can’t do, such as name guardians for your children. Many parents prefer to select a guardian for their children and their property, rather than let the court decide. A will can also allow you to make a plan for paying off debts and final taxes.
This means that you can eliminate some of the tasks your executor or loved ones might have to do by planning ahead. You won’t be able to reduce estate taxes through your will, but you can use other tools to minimize taxes owed.
If you create a living trust, your family may be able to avoid probate court proceedings. You can put almost any type of property into a living trust, including bank accounts, real estate, and jewelry. Similar to a will, you must name a successor trustee to handle your trust after you pass away. This person will be in charge of distributing the assets and property included in your living trust.
Revocable Or Irrevocable Trusts: What’s The Difference?
You can create two different types of trusts – revocable or irrevocable. A revocable living trust can be modified or adjusted throughout your lifetime. This means that you can change beneficiaries, add a property, or change trustees at any time. You can also destroy the trust if you no longer want it.
Your second option is an irrevocable trust, which is much more secure. Once this trust has been created, you cannot touch anything in it or make any adjustments to it.
Depending on your financial situation, you may prefer an irrevocable living trust for its security. A trust is typically for those with greater wealth, and we do not recommend this option for just anyone. We can review your case to better determine the right option for you.
Choosing The Right Fiduciaries: Executor Vs. Trustee Vs. Guardian
Choosing the right person to carry out your estate plan is just as important as choosing the right documents. Your executor handles your estate after you pass away. This may include collecting assets, paying debts and distributing property according to your will. When choosing an executor, consider choosing someone who is responsible, organized and able to handle both financial and family matters.
A trustee manages property held in a trust. If you create a revocable living trust, your successor trustee may take over after your death or if you become unable to manage the trust yourself. Look for someone you trust to follow your instructions, manage assets carefully and communicate with beneficiaries.
A guardian is responsible for caring for your minor children if you pass away. When choosing a guardian for minor children in Kentucky, consider the person’s relationship with your children, values, financial stability and ability to provide a safe and supportive home.
A common mistake is choosing someone simply because they are a close relative. You should also consider whether the person has the time, judgment and skills needed for the role. You can also name different people for these positions when that makes sense for your family.
Can I Change Or Update My Will Or Revocable Trust After Writing It?
Yes. As long as you have legal capacity, you can update a revocable trust by executing a trust amendment. You can modify a will through a codicil, which is a formal amendment executed with the same witnessing and signing formalities as the original will. You can also create an entirely new will that revokes previous versions.
It is important to review your estate planning documents after major life changes. Marriage, divorce, the birth of a child or the purchase of new real estate may affect your estate plan. Reviewing your documents after these events can help ensure they still reflect your wishes.
Using A Will And A Trust Together: The Pour-Over Will
Estate planning is not always an either-or choice. Many comprehensive estate plans use both a trust and a special type of will called a pour-over will.
If you transfer most of your major assets into a living trust, you could still acquire property or personal items that remain outside the trust. A pour-over will serves as a legal safety net by directing assets left outside the trust at your death into the trust through probate.
This approach can help keep your assets aligned with your broader estate planning goals. An estate planning attorney can review your assets and help you determine whether using a will and trust together makes sense for your circumstances.
Call 270-561-6155 To Protect Your Assets And Estate
Whether you want to create a will or a trust, an estate planning lawyer from our firm has the experience to help. Contact us today to discuss your situation.