WILLS
What happens when a person dies without a will?
The deceased person’s assets are probated or passed through the courts for distribution according to the laws of intestacy.
Is my Will valid in another state?
Your will may be valid in another state so long as it meets the requirements of that state’s laws. Each state has its own laws in regards to Will construction and probate. Additionally, some states have different property laws that could impact your estate. It is a good idea to have an attorney in the state you reside in review your will.
Is a Pour Over Will the same as a Last Will and Testament?
A Pour Over Will is a valid Will. A Pour Over Will is a short, simple Will that tells your Executor to give any assets that were not put into your trust before you died into the trust. If there was a bank account you forgot about, for example, your Executor would make sure that account was transferred to the Trust and became part of the trust property so those terms would control the management of the assets.
Can our financial planner serve as a witness?
Yes. A witness cannot be a beneficiary or family member.
REVOCABLE LIVING TRUSTS
What is a revocable living trust?
A revocable living trust is a legal document that, just like a will, contains instructions for what you want to happen to your assets when you die. Unlike a will, a living trust can avoid probate at death, control all of your assets, and prevent the court from controlling your assets if you become incapacitated.
I have a will. Why would I want a living trust?
A will does not avoid probate when you die. A will can only go into effect after you die. It provides no protection if you become physically or mentally incapacitated. This means the court could easily take control of your assets before you die.
Is a “living will” the same as a living trust?
No. A living trust is for financial affairs. A living will (or advanced health care directive) manages medical affairs.
Why would I want my loved ones to avoid probate after I die?
It can be expensive (legal fees, executor fees, and other costs associated with probate),
the probate process takes time (usually 9 to 12 months or longer), and the probate process
is public.
the probate process takes time (usually 9 to 12 months or longer), and the probate process
is public.
What is a tax ID #?
The tax identification number of the trust is the Social Security number of the Settlor during the Settlor’s lifetime. During your lifetime, you do not need to obtain a separate tax identification number for your trust or to file a separate trust tax return. The Internal Revenue Service (IRS) prefers that you use your own Social Security number. You should report all of the income generated by trust assets on your personal IRS Form 1040.
What is the difference between a Settlor, Fiduciary, Executor and Trustee?
A Settlor is the person creating the trust, usually you (and maybe a spouse). A Fiduciary
is a term used to refer to a Trustee or Executor (or other person who manages assets). An Executor is the person who manages your Will upon your death. A Trustee manages your Trust upon your incapacity or death.
is a term used to refer to a Trustee or Executor (or other person who manages assets). An Executor is the person who manages your Will upon your death. A Trustee manages your Trust upon your incapacity or death.
Does the term “descendants” include spouses or step-children?
Descendants are direct familial connections, such as parent to child or parent to grandchildren. The term does not refer to nieces, nephews, spouses, aunts, uncles, or other family.
Why do I need a certificate of trust?
The certificate of trust act as a summary or quotation of selected parts of the trust. Its purpose is to allow a person or financial institution to know the correct name of the trust, who the trustee is, and that the trust is currently valid. The certificate does not identify the beneficiaries or the assets and therefore helps keep the details of your trust and assets confidential.
PROBATE
Does joint ownership avoid probate?
Not really. Using joint ownership usually just postpones probate. With most jointly owned assets, when one owner dies, full ownership does transfer to the surviving owner without probate. But if the owner dies without add a new joint owner, or both owners die at the same time, the asset must be probated.
What is the difference between probate and non-probate property?
Probate property is controlled by the will and non-probate probate is not. Examples of non-probate: jointly held real property, life insurance policies, and trusts.