A living trust is a powerful estate planning tool that can help your heirs and beneficiaries avoid the probate process after your death. A properly executed trust will ensure that your assets are distributed faster than if they had to go through probate—and with fewer fees and other expenses. It’s one last gift you can give to those you leave behind. However, many people faced with creating a living trust may not be aware that a living trust by itself isn’t enough to protect their estate. One of the most common questions people have is whether a last will and testament is necessary if a living trust is created.
Protecting Your Estate’s Assets With a Will
The simple truth is that a living trust by itself is not enough to protect your assets after you die. A living trust is only as good as the assets you put in it. If you have not fully funded your living trust with every single eligible asset, the remaining assets may be required to go through the probate process. A sudden inheritance, a forgotten asset, or simply something that you never got around to transferring to your living trust could all be forced to go through the probate process, unless you create what’s sometimes called a “pour-over will.” Although it is no replacement for properly funding a living trust, the pour-over is legal device that will help catch those forgotten assets and get them into your living trust. The downside is that the probate court will first have to take action, allowing the assets to be given to your trust, but it’s better than having to go through the full probate process.
Protecting Your Children With a Will
Another extremely important function of a last will and testament is appointing guardianship for your children. If you should pass away while your children are minors, you’ll likely want to specify someone you trust who will be responsible for taking care of them. Otherwise, that decision will fall to the court’s rules, which could leave your little ones in the care of someone you wouldn’t be comfortable with.
You can also use your will to appoint someone to take care of the assets you leave to your children until they reach an age when they can use your final gifts responsibly.
A will also allows you to name a personal representative (sometimes called an executor, although this term is no longer used legally) to your estate. Your personal representative will be responsible for carrying out the terms of your will, inventorying your assets, paying debts out of estate assets, and distributing the remainder to beneficiaries. A personal representative is a position of trust, so it’s important to choose someone who willingly accepts the responsibility. You may want to have a back-up representative named, too, in case your first choice is later unable or unwilling to take on the task of administrating your estate.
Get Legal Help With Your Estate Plan
There are many advantages and some disadvantages to both living trusts and wills that will affect the final outcome of your estate. An experienced estate planning and probate attorney will be able to answer your questions, help you decide what’s best for your individual needs, and craft a plan that will ensure that your family is taken care of.
To get the answers to your estate planning questions today, The Law Offices of Molly B. Kenny is available to help you. Call us, or click the contact link at the top of the page to send us an email, and arrange a private consultation with a legal professional in our Bellevue office today.