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ESTATE PLANNING GENERAL GUIDELINES
Estate Planning is the process by which you establish legal documents that will control what happens to your property after you pass away. This process can also legally establish what you want to happen if you are seriously injured or incapacitated. Both wills and trusts perform the function of allowing you to arrange distribution of your assets upon death, but they operate differently. Deciding which document to use depends on a number of factors, including your goals, assets, your age and health, and family circumstances.
We welcome you to read the following as a basic understanding of how each of these legal documents function, and are available to answer any questions you may have in order to help you choose the right document based on your specific needs and goals.
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What Are Living Trusts and Wills?
A will is a legal document that describes your estate and a person, group of people, or an entity that will receive your property. Depending on your specific wishes, you can specify instructions regarding care of minor children, gifts and other legal documents arrangements after your passing.
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Trusts, and there are many different types available, are created to be managed by a trustee for the benefit of another person, persons, or entities, who are referred to as ‘beneficiaries’. The two basic types of trusts are ‘revocable’ and ‘irrevocable’. A revocable trust can be changed during the creator’s lifetime, while an irrevocable one cannot. It is important to note that, upon the death of the creator, a revocable trust converts to an irrevocable trust.
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General Differences between a Will and a Trust:
Effective Date - A will only becomes legally effective upon the passing of the creator, while a trust can become legally effective immediately upon creation.
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Probate Proceedings – A will requires that your assets pass through a court-supervised process called ‘Probate’, which can incur expenses and may take time to process. A trust is not subject to Probate (unless an issue within the trust needs to be addressed), and therefore can become effective immediately upon the passing of the creator.
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Privacy – Once before the Probate Court, the content of a will becomes public information, while the contents of a trust remain private unless legal proceedings are filed.
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Healthcare Directive – This is a written document that informs others of your wishes about your health care, and allows you to name a person to decide for you if you are unable to decide.
While a will may work for many people, if you hold assets such as real estate, or assets over $150,000, a trust may be the best option for you in order to achieve all of your goals.
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If you would like to see pricing and availability of our ONLINE Estate Planning Services, and answers to many of our Frequently Asked Questions, please enter your information, and we will Email you login credentials to our secure Estate Planning Portal.
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