|
REVOCABLE
TRUST
* Avoids probate at death, including multiple
probates if you own property in other states
* Prevents court control of assets at incapacity
* Brings all your assets together under
one plan
* Provides maximum privacy
* Quicker distribution of assets to beneficiaries
* Assets can remain in trust until you
want beneficiaries to inherit
* Inexpensive, easy to set up and maintain
* Can be changed or canceled at any time
* Difficult to contest
Prevents court control of minors' inheritance
* Can protect dependents with special needs
* Prevents unintentional disinheriting
and other problems of joint ownership
* Peace of mind
PROBATE
Probate is the legal process through which
the court sees that, when you die, your debts are paid, and your
assets are distributed according to your will. If you don't
have a valid will, your assets are distributed according to state
law.
* It can be expensive
* It takes time
* Your family has no privacy
* Your family has no control
LIVING
WILL
A living will and a living trust are
not the same thing. A living will is for medical affairs; it
lets others know how you feel about life support in terminal
situations. A living trust is for financial affairs. Most
durable powers of attorney for health care include a living
will.
POUR
OVER WILL
A pour-over will acts as a kind of "safety
net," in the event you forget to retitle an asset in
the name of your trust. Upon your death, the will catches
the forgotten asset and sends it into your trust. In certain
circumstances, the asset may still have to go through probate
first, but at least it can then be distributed as part of your
living trust plan.
DURABLE
POWER OF ATTORNEY (Health
Care Directive)
There are two types of durable powers of
attorney. One is for health care and one is for property
management. The health care directive appoints someone
to make health care decisions for you in case you are unable
to do so yourself. It also includes your wishes about life
support (Living Will) as well, and your intentions regarding
donating body parts and organs. The property management
power appoints some one to handle your financial and business
matters if you become incapable of doing so yourself.
|
