Frequently Asked Questions
FAQs For Wills
Yes. Probate is the court process for settling a person’s estate through a last will and testament. Your assets (real estate, bank accounts, stocks, etc.) will get distributed either by your last will and testament if you have one, or to your heirs according to the default state formula.
It depends on your situation, but in many cases, a will is enough for most people. Revocable trusts are useful because they can avoid probate and protect privacy.
A will can designate a guardian for minor kids and protect your money so they will be provided for later in life.
Even if you have a revocable living trust, you still want a backup or pour-over will in case you need to go to probate. In that case, the backup will can leave everything to your trust.
The executor is the person who is in charge of administering your estate when you pass away. That means paying your debts and distributing your assets to your beneficiaries.
Yes, a will can potentially help you save on estate and capital gains taxes.
FAQs For Trust
You should consider a revocable trust for several reasons. The most important reason to have a trust is to avoid probate.
A revocable trust can help you avoid probate, protect your privacy, reduce the risk of estate litigation after you pass away, and determine the character of property owed during marriage.
Even if you have a revocable living trust, you still want a backup or pour-over will in case you need to go to probate. In that case, the backup will can leave everything to your trust.
A revocable trust will not protect your assets from creditors while you are alive, but it may provide asset protection after you pass away.
Like a will, a revocable trust can help you save on estate and capital gains taxes if done properly.
The benefit of a revocable trust is mostly to avoid probate, and avoiding the time and cost of probate can be useful regardless of financial status.
FAQs For Incapacity Planning
No, a power of attorney is only valid when you are alive.
A power of attorney is a document that gives someone else the ability to make decisions for you if you are unable to.
If you become incapacitated, whether from a severe accident or something more gradual like dementia, and you do not have a power of attorney, your family may need to get an adult guardianship to care for you. A power of attorney is a far cheaper and easier solution than an adult guardianship.
This document gives medical providers
instructions on what to do in certain near-death situations. This is most often used to address the unlikely situation that you are on life support with no reasonable chance of recovery. A health care directive would allow your doctor to let you die in peace without artificially prolonging your life, at great emotional and financial cost to your family.