We help our clients get their estate plans organized and then executed with the use of updated wills and family trusts. Many people aren’t sure what the difference is between the two and don’t know which they need or if they need both.

A will  is a written document that leaves your final instructions as to where you would like your assets to go to after your death. You can name large items down to tabletop statues and all items in between. Generally, you will name an executor of the will and they will oversee transferring items in the will over to the beneficiaries.

Depending on the asset, it might already have a direct beneficiary named in the internal documents of that account. Most bank accounts, annuities, life insurance, and investment accounts will have direct beneficiaries named in the documents that will usually supersede any instructions in the will.

If you want to change beneficiaries when you are still alive make sure you change the beneficiary form of those types of accounts along with changing your directions in your will. Many assets don’t have titles or direct beneficiaries, i.e. cars, jewelry, guns, pleasure vehicles, business equity, personal keep sakes, books and many other types of assets.

These types of assets will usually require a will to be transferred properly and without arguments. The biggest asset most people leave behind is the family home or other types of real estate.

The will says who is supposed to get ownership but right now actual title is most likely in the name of the deceased. How do we get those hard assets retitled to the beneficiaries? Usually this will require going to probate court and having a court oversee disbursement of the estate.

Many people will attempt to circumvent this process by adding their heirs (usually their children or nieces and nephews) to their deeds. This solution can be fraught with danger for too many reasons to talk about here and those dangers will be different from state to state.

Many times if you add beneficiaries to deeds and titles beforehand their liability becomes your liability because they already own the asset. Now creditors may be able to come after those assets (still your assets but now theirs as well because of the deed and title transfer) if your heirs lose a lawsuit and their assets are pledged to satisfy any judgments.

Some states allow for the use of so called “lady bird” deeds which can help transfer title without the liability mentioned above. See a competent estate planning professional to find out what might be the best option for you in your state.

Generally, you are much safer to prepare a living family trust while you are alive and deed the property into the trust. Now when you pass away you  don’t own the property so there is nothing to probate. Just a trust agreement stating who owns the trust and who the trustee is both now (usually you and a spouse) and providing for a new trustee after your passing. This trust document will allow your estate to control the real estate without having to have actual title in their name.

If you need a new will or trust (or need an old will or trust updated) please reach out to us and we can help you accomplish these goals at a reasonable price.