Presentation on theme: "Financial Health Workshop - April 29, 2011. What is a will? A legal document of instructions listing the distribution of property, designating beneficiaries."— Presentation transcript:
Financial Health Workshop - April 29, 2011
What is a will? A legal document of instructions listing the distribution of property, designating beneficiaries to receive specific items from your estate. If you have minor children it allows you to appoint a guardian for their care. A will goes into effect at the time of your death.
What is a Living Trust? A legal document which provides a life time and after-death property management for your beneficiaries, set up with your specific requirements and time frames for distribution. If you are disabled or become incapacitated, the trust is in place to manage your financial affairs.
What if you don’t have a Will or Living Trust when you die? The legal term is dying intestate if you fail to have a Will or Living Trust at the time of death. State Law will control and distribute your property to your spouse or closest heir, regardless of your wishes, and appoint anyone to be the administrator of your property. If you have minor children the state can appoint a guardian of their choosing.
What do I need to do? Meet with a Lawyer to determine your specific needs to help determine whether a Will and/or a Living Trust is better for your estate. Compare costs and services by getting a couple of estimates
Probate WillsLiving Trust Probate Must go through probate to validate the will Out-of-state property will go through probate in that state too Made public record at the time of your death Not subject to probate if all the assets are put in the name of the trust Out-of-state property not subject to probate Remains Private
Guardians WillsLiving Trusts Guardians Name guardians for minor children Does not name guardians for minor children, but can appoint someone other than the guardians to manage beneficiary’s assets until distribution
Management of your Assets in Case of Incapacitations WillsLiving Trust Management of your Assets in case of Incapacitations Only useful once you pass. You must have a Financial Power Of Attorney to manage assets Makes provisions for a successor trustee if you become unable
Holding Assets WillsLiving Trust Holding Assets Can’t hold assets after death Can hold assets upon death to be disbursed at a later time. Examples: Young beneficiaries; special needs beneficiaries; pets
Effective Date WillsLiving Trusts Effective Date Takes effect at time of death Takes effect once documents are signed
Funding WillLiving Trust Funding Not required Need to have all assets and bank accounts tranferred into the name of the Trust
Cost and Preparation WillLiving Trust Cost and Preparation Costs less than a Trust to purchase Costs involved at Probate Prepared by an Attorney Costs more than a Will to prepare, fund and manage a Trust depending on the size of the estate No probate – No costs Prepared by an Attorney