Writing a Will — Living Trust
Everyone has heard of wills.
However, how many know about living trusts? In fact, until recently, I never knew they existed. So what exactly Is a living trust you may ask. Put simply, It is a written legal document that partially
replaces a will. Will you need one though? That’s the question many people find hard to answer.
Unless you have assets or children, living trusts are probably not the best option. However, if you have significant assets, living trusts allow you to remain in control of your assets and manage them according to your wishes. You an also name a secondary trustee should you not be able to manage them yourself. Anyone with simple estates, or that wishes to have court supervision over their assets and accounts should not consider a living trust either.
One major advantage of living trusts is the absence of court interference. With wills, court supervision and approval is required. Being able to control one’s own assets is appealing. Face It no one likes dealing with court officials especially after a death. There are no arguments as to who has control of your assets or your will. You will normally be the trustee of your own living
trust with a secondary trustee named In the event your become Incapacitated.
Should you die, your name successor will manage the trust according to your wishes. No lawyers will be involved which Rive every one left behind time and money. It is important to discuss the planning with a lawyer to better understand how it works If you name the wrong person as the trustee, you may betaken advantage of. A lawyer can provide guidance so you make the right choices. Remember, no court or judge to come to your defense with a living trust.
You should still have a will with a living trust. This is especially Important when children are Involved. A will can serve to name their legal guardian. Also, your will contains any assets not listed in your living trust. It is
always best to have all your bases covered.
Some benefits to living trusts include protecting property for beneficiaries, reducing or eliminating taxes, managing property while Incapacitated, avoiding probate, avoiding a will contest, and privacy. When looking at all the
benefits and the ease of setting up a living trust, the biggest question is why shouldn’t you have a living trust?
Probate
When you pass away, it’s highly likely that your estate will pass through the probate court, although this is not always necessary. Although this can take several months or even up to a year or more, probate Is not complicated. It Involves four basic steps and has multiple advantages.
What Is Probate and the Process?
Probate is a legal process primarily designed to transfer ownership following a death. It involves settling your estate and determining the validity of your will, if you had one. If you don’t name an executor In your will, probate allows for the appointment of a court representative or administrator who can handle executor duties. Probate also involves the adjudication of disputes that arise from your estate. The probate court is the branch of the court that deals with estate settlement and which oversees the probate process.
The Steps of the Probate Process
The probate process has few major steps.
1) Filing of formal paperwork to notify the court of the death, clarify who will act as executor or administrator, and formalize estate proceedings If you have not appointed an executor in your will, individuals who want to act as your executor may come forward and apply to be the executor, explaining their relationship to you and why they wish to take on the executor responsibilities If no one wants to come forward, the court appoints someone to act for you. This Is good from the standpoint that the administrator is objective regarding the estate, but negative in that lack of familiarity with your estate may delay distribution of assets or other property slightly.
2) Validation of the will, if any, compiling list of all property, assets and other issues the executor needs to handle the court looks at whether there is a will for your estate. If there is, they verify the will was properly signed by If there is, they verify the will was properly signed by witnesses and dated. They compare It to other versions of your will that might exist to determine which will Is the most recent. If you did not make a will, the court will distribute your assets and property based on current property law. Wills are not always necessary, but because they handle other Issues outside of property such as guardianship of minor children, they still can be advantageous.
Legal | Property deeds
Property deeds are the legal documents that are used to transfer real estate property titles from one party to another. The property deed must be executed in the presence of a notary In order for it to be legal. Plus, It must be of a notary In order for it to be legal. Plus, It must be recorded at the County Recorder’s office. Once both of these steps are taken care of, the people who are named on the deed own the title to the property named on the deed.
Each time the property is sold, a new deed must be executed in order for the transfer of ownership to take place.
Property deeds include specific pieces of information such as the description of the property, its location or property lines, the grantor, the grantee, the addresses of the parties involved In the transfer, and spedfic words of conveyance. The grantor is the seller and the grantee is the buyer. The words of conveyance express the transfer of the property.
Warranty and quit daim deeds are the most commonly used. A warranty deed is used when the grantor guarantees or warrants that he holds the property free and clear. With it, the grantor guarantees that he I s the rightful owner
and has the ability to transfer the title. A limited warranty deed Is limited to the time that the grantor was the owner of the property. It warrants or guarantees the state of the title during that specific time only.
With a quit daim deed, the grantor Is only guaranteeing that he is transferring the title to what he does own In regard to a specific property. Since no guarantee is offered that the property Is free and dear, a bit of risk
is attached to this type of deed. This type of deed Is commonly used when the property is transferred as part of an estate inheritance, when the owner wants to remove a spouse from the deed, or when the property is transferred
to a living trust.
Estate deeds are used to transfer real estate property directly to a new owner who Is referred to as the directly to a new owner who Is referred to as the
remainder man upon the previous owner’s death. Transfer on death deeds allow a property owner to designate a beneficiary who will receive ownership of the real estate property upon the current owner’s death.
Survivor-ship deeds, commonly used by married couples who purchase property together, pass the title or ownership of the property to the surviving partner. This type of deed allows the owners to avoid probate upon the first death only. Survivor-ship deeds should not be used when more than
two people are involved.
