What is a Will?

The Last Will and Testament is a legal document that details a person’s wishes regarding the guardianship of minor children, the distribution of their assets after their death, and who the estate executor should be. While it might feel overwhelming to contemplate now, naming a guardian or guardians for your young children in a will is critical in easing the transition of care at what will be a difficult time. A will also allows you to name property managers for any property (homes, cars, or anything of significant value) being left to minor children who cannot legally own them until after they turn 18. Without a will, the court will make all guardianship decisions.

Assets can be bequeathed to relatives, friends, educational institutions, or charities. While you may choose to handle the distribution of larger assets (like a home) in other ways, a will is a useful instrument for expressly bequeathing items to specific people, so there is no mistaking your wishes once you are gone.

Even if you have provided explicit detail about the distribution of all of your assets following your death, your will must go through probate. This can be a lengthy process, even if nobody contests it, and the details of your Last Will (and the probate court records) are public. Probate lawyers can be pricey, and only a handful of states allow you to avoid using them. However, financial assets such as life insurance, IRAs and other retirement accounts, and mutual funds will go directly to whoever has been named a beneficiary. Those assets are not required to go through probate court.

A Last Will is also an excellent way to express your funeral wishes. By offering instructions about your vision for your end-of-life celebrations, your family can be sure that they are genuinely honoring you and your life. It can also ease the decision-making process for them at an intensely emotional time. To learn more about advanced funeral planning, click here and here.

What is a Revocable Living Trust?

A Living Trust creates a fiduciary relationship with a trustee who is given the legal authority to handle your assets for your beneficiaries. Unlike a Last Will, which is only activated upon death, a revocable living trust takes effect as soon as the trust is established and the assets are moved into place. You also can use a trust to manage the distribution of property for you and your family during life. It is referred to as being “revocable” because it can be amended at any time to reflect a change in assets or beneficiaries.

Designing a Living Trust is a more complicated process than drafting a will, but it may offer you greater say over how your assets are distributed. Typically, having a trust will keep your assets from going through the sometimes costly probate process, and the details of the trust are kept private.

What is an Irrevocable Trust?

In an irrevocable living trust, you would lose the ability, in most cases, to change the beneficiaries named in the trust. Technically, the trustee would become the owner of the assets that have flowed into the trust. This approach might be a favorable one for those hoping to reduce their estate taxes significantly.

What are the Differences Between a Living Trust vs a Will?

When considering designing a living trust vs a will, there are various advantages and disadvantages to keep in mind. Among them:

Can I Have a Living Trust and a Will?

Yes. Some experts recommend having both a Living Trust and a Last Will, particularly if you have minor children. The Last Will names guardians for your children, details your wishes regarding your funeral, and appoints an executor to oversee your assets’ distribution after death. If you have a Living Trust, you have more control over your assets’ distribution while you are still alive. When designed properly, these two legal documents can work in concert to provide you with a secure estate plan.

The information provided above is not meant to replace expert estate planning, tax, or financial advice. As you design your estate plan, please reach out to a qualified professional.

Do you have questions about creating an end-of-life checklist or any other issues relating to end-of-life celebrations? Titan Casket is here to help you get the funeral you want at a fair price. Contact us in the chat window or here to get started.