Why don't people like probate?
What is Probate?
What is a Trust?
What is the difference between a Will and a Trust?
If I die without a Will or a Trust, will my property go to the State?
Does a Trust save on taxes?
If I have a Trust, will the estate have to go through Probate?
Is a Trust for everyone?
Do I need a Power of Attorney?
Can I prepare my own Will or Trust?
My parents just died. Do I need to do anything?
What is joint tenancy?
Should I place my property in joint tenancy with my children?
Why don't people like probate?
Probate is time consuming (a minimum of seven months) and expensive (attorney’s fees and the fees of the Executor or Administrator are set by law).
What is Probate?
Generally, Probate refers to a court proceeding, the primary purpose of which is to provide for the orderly passage of title to property owned by someone who has died.
What is a Trust?
A trust is a written document in which you (generally) name yourself as trustee of your own property, with provisions for successor trustees should you die or become incapacitated. It’s primary purpose is to avoid Probate.
What is the difference between a Will and a Trust?
A Will is a simple document (as compared to a Trust) which, upon your death, would have to be offered to the Court for Probate.
A Trust, on the other, hand is generally administered privately, outside the Court process.
If I die without a Will or a Trust, will my property go to the State?
No, the law generally provides that your estate, if you did not have a Will or a Trust, will be distributed to your closest relatives.
Does a Trust save on taxes?
Most estates do not have any death taxes to worry about. However, in a large estate, a trust can be designed so as to effect some possible savings on death taxes.
If I have a Trust, will the estate have to go through Probate?
If the trust is properly designed and funded, your estate can avoid the time and expense of a probate proceeding. This is one of the benefits of a trust.
Is a Trust for everyone?
No. There are some family situations that might benefit from the oversight of a Court proceeding. There are some estates that are so small as to not warrant the expense of a trust.
Do I need a Power of Attorney?
Yes, you should have a Power of Attorney for Health Care, so that someone can make your medical decisions if you are unable to. You should have a Power of Attorney for asset management so that someone can pay your bills and take care of your assets if you are unable to do so.
Can I prepare my own Will or Trust?
Yes, there is something called a Statutory Will, and you can follow the format of that document. However, it is wise to have professional advice, as many people omit important provisions in their hand-drawn wills.
Trusts, on the other hand, are generally too complex to be prepared by one’s self.
My parents just died. Do I need to do anything?
You should immediately see a lawyer experienced in estate matters. There are many steps to be taken, even with a Trust, in order for you to inherit your parents’ property.
What is joint tenancy?
Joint tenancy is a way to hold title to your property, in which, when you die, your property passes automatically to the surviving joint tenant.
Should I place my property in joint tenancy with my children?
Generally, a bad idea. Should your child incur debts, your property could become liable for those debts. Also, you might have a disagreement with your child should you want to sell or encumber your property. Finally, it is better for a child to inherit your property upon your death, for tax reasons.
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