Frequently Asked Questions:

• What is a will vs. what is a trust?
• A will is a legal document that outlines how you want your assets distributed and who will care for your minor children after your death. It goes into effect only after you pass away and typically requires going through probate, which is the court process to validate your will.
• A trust, on the other hand, is a legal arrangement that allows a third party, known as the trustee, to hold and manage your assets on behalf of your beneficiaries. Trusts can take effect during your lifetime and help avoid probate, offering more control over how and when your assets are distributed, which can provide privacy and potentially save time and costs for your loved ones.
• What is the probate process?
• The probate process is the legal procedure by which a court oversees the distribution of a deceased person's estate. During probate, the court ensures that the deceased's assets are distributed according to their will (if one exists) and that any debts or taxes are paid. If there is no will, the court distributes the assets based on state law.
• The process involves:
• Validating the will, if there is one;
• Appointing an executor or personal representative to manage the estate;
• Identifying and valuing the deceased's assets;
• Paying any debts and taxes;
• Distributing the remaining assets to the beneficiaries.
• Probate can sometimes be lengthy and costly, which is why many people seek to avoid it through estate planning tools like trusts.
• Do I need a will or do I need a trust?
• It depends on your personal situation. A will allows you to outline how your assets will be distributed and appoint guardians for minor children. A trust can help you avoid probate, offer more control over asset distribution, and may provide tax benefits. Trusts are especially useful for estates involving real estate properties or complex estates.
• What happens if I don't have an estate plan in place?
• Without an estate plan, the state will decide how your assets are distributed, which can lead to lengthy legal processes and outcomes that may not align with your wishes. It can also complicate matters for your loved ones during an already difficult time.
• How often should I update my estate plan?
• It is a good idea to review and update your estate plan every 3-5 years or after major life events such as marriage, divorce, the birth of a child, or a significant change in your financial situation.
• What is the difference between a living will and a power of attorney?
• A living will outlines your wishes for medical care if you become incapacitated and can't make decisions for yourself. A power of attorney allows you to designate someone to make financial decisions on your behalf if you're unable to do so.
• Do I need to designate guardians for my minor children?
• Yes, it's highly recommended to designate guardians for your minor children, and you can do so as part of your estate plan. If something happens to you and the other parent, a guardian will be responsible for raising your children and managing their well-being. Without a designated guardian, the court will decide who takes on this role, which may not align with your wishes. By choosing a guardian, you ensure that someone you trust will care for your children and make decisions that reflect your values and priorities.