Audobon Estate Planning Lawyers
Today you feel vibrant and alive, mentally competent. You might even have a carefree lack of concern for how your financial assets will be distributed when you die. However, what if you fall victim to unexpected or unforeseen circumstances? What if you suddenly lose your mental faculties? What then? Consult with our Audobon estate planning lawyers.
Establishing a living trust and a last will and testament help plan for the allocation of your estate before you pass on. Our Audobon estate planning lawyers prove indispensable in seeing wills & trusts properly written and submitted to carry our your wishes accurately. The execution of an estate that has a living trust in place essentially invovle three stages.
Establishing Wills and Trusts
First, establishing a living trust or a last will and testament needs to be completed under the guidance of an expert estate planner. Our Audobon estate planning lawyers will draft documents that specify how your money, property, or other valuable assets are dispersed.
You might choose to appoint a trustee. The benefit of having a trustee or executor assigned comes into play in the event you are deemed mentally incompetent before you actually die.
While having an appointed trustee is not mandatory, we recommend it. The assignment of trustee responsibilities can be changed if due to unforeseen circumstances you change your mind. As part of creating these documents, you may also consider appointing a power of attorney to handle cases such as mental incapacity.
Wills & Trusts – The Differences
Wills and living trusts are not the same thing. Each one has a useful purpose in the planning of your estate and should be discussed with our knowledgeable our Audobon estate planning lawyers. One difference between the two is when they will actually go into effect.
Your will indicates your wishes when you die. A will does not become active until at which time you pass away. Wills can only deal with property in your name and do not include property in joint title or tenancy.
Trusts, however, disperse property before your death, at the time of your death or any period afterward. Your trust will be a legally binding agreement between you and a designated trustee.
Trustees can be an individual, or an institution such as a bank or legal firm. The trustee holds trusts for a designated person referred to as the beneficiary. Trusts often establish a series of two sets of beneficiaries. One set receives the benefits established by your trust during their lives and the other in the event that the original beneficiary dies.
Revocable Living Trust vs. Irrevocable Living Trust
Two notable differences exist between a revocable living trust and an irrevocable living trust. When the revocable option is chosen, beneficiaries can be changed or removed, plus the stipulations of the trust modified. Irrevocable cannot be altered except in very rare circumstances.
You may assume that a revocable living trust is always the logical choice. This is not always true, because with the level of control in a revocable trust, also come some disadvantages. If you are sued, assets in a revocable trust are not protected and can be liquidated to satisfy a judgment. Make sure to discuss these options in detail with knowledgeable counsel to select the right option for your specific situation.
You might consider using a pour-over will. This situation occurs when your estate creates a trust and states that the designated trustee will receive your property in the event of your death. Discuss a pour-over will with an attorney because while they are becoming more commonly accepted, as they are not in all jurisdictions.
Having your wishes legally documented before you die or lose your mental faculties, is critical. Establishing a living trust and a last will and testament before you need them will relieve your family of unnecessary stress. Drafting your living trust and will using our Audobon estate planning lawyers avoids the calamity of a sudden mental illness or death occurring, where your affairs go into probate court without an established guideline for the disbursement of your property.