There are many instances why a person may think they may not need a will or a trust. A widower who just lost his wife may think just because they were married everything goes to him. Guardians to children who have lost their parents to an untimely death think that the estate money will help provide for the children. Unfortunately, if there is no will or trusts, who knows where your money is going to go after you pass away.
What many people do not know is that the state will step in if there is no will. Usually there is a line of first, second, third and so on of individuals who may be eligible to receive the assets left behind. This line may not be the people who really wanted to leave your money to though.
In Pennsylvania, if you die without a will, the Pennsylvania’s Laws of Intestacy can dictate who and who does not receive assets. There are even some times when all of the assets can be passed onto the Commonwealth. Writing out a will has never been so easy and setting up a trust seems to be even easier.
What are Wills and Trusts?
A will, also known as a testament, is a document noting what a person wants after his death. For instance, an individual may want one child to have her diamond ring while the other child would get the diamond earrings. This desire would be documented in a will.
A will can be changed as many times as you would like. You can have over 100 wills written in your entire lifetime. But the last one which has been written, dated, and notarized will be the valid one after death.
A will can include any desires or wishes including how you want you estate divided, who you would like your assets left to, and even named guardians if you have minor children. If you have minor children it would be best not only to name a guardian but to also set up an Irrevocable Trust.
An Irrevocable Trust is a trust fund which can not be changed. The Irrevocable Trust helps protect assets. These assets can be placed in the Irrevocable Trust and then beneficiaries are named. When the person dies, the trust goes right to the beneficiaries…bypassing any middle man such as estate taxing or creditors. This means more money for the beneficiaries.
Wills and trusts can be setup through lawyers or even using at home software. As always, using a lawyer may mean paying more out of pocket money, but it also means that all details are noted and evaluated by a professional. Using computer software to set up a will and trust, it may be best to still have a lawyer take a look for a reduced price since all the paperwork has been completed.
Who are the Best Candidates for Wills and Trusts?
Anyone really can have a will and set up a trust. Wills and Irrevocable Trusts are best for parents of minor children. Without a trust or will in place, the minor children could have no beneficiary rights to the parents estate. Even worse, the minor children can be given to adults whom you never wanted to be named as guardians to your children.
Wills are also best for people who have a lot of assets, and in turn, a lot to lose. It is also best for those individuals who may want to omit people from inheritance or ensure various percents of inheritance.
Benefits
The benefit of having a will in place is that your final wishes are granted. You wanted your son to have your great-grandfather’s watch and he gets it because it was stated so in the will. If you hadn’t had a will in place your brother-in-law may have gotten it instead. This is only one prime example of something which can happen after your death. If you do not have an Irrevocable Trust in place, your estate can be severely taxed and creditors can claim money from your estate. Having the trust in place protects your possessions.
Risks
There are no real risks with having a will or a trust. The only real risk you can have from having a will is having someone feel unloved or left out of a will. This in turn can bring someone to despise you he is left out of the will.
