Wills and Trusts 101 – Part 1 of 2
Very often we hear these terms used together: wills and trusts. However, they are not the same and, in many cases, they fulfill different functions. Many of us have probably seen those infamous scenes on TV shows or movies, where the attorney reads the deceased uncle’s Last Will and Testament to the surviving members of the family, each member on the edge of their seat wondering if they have any left. millions to uncle. And, when it comes to a trust, many of us probably think of wealthy adult children receiving money from a trust, often called trust babies. But, both of these images really limit how important it is for the average person to have some sort of will or confidence in place.
You are probably reading this because you, like many of us, know that we have to have some type of document that indicates how our assets will be delivered at the time of our death, as well as who will care for our children at the time of our death. , It’s crucial. And knowing that we have these documents helps us sleep better at night. To this end, this week, which is Part 1 of 2, we’ll start with understanding the basics.
What is probably the most important issue for many of us is that a well-drafted will tells our survivors who will be the guardian of our children. For example, if a single person with children dies without a will, their survivors must file papers with the court to determine who will be the guardian of the surviving children. This can be a lengthy and expensive process and may not necessarily honor the unwritten wishes of the deceased person. A well-drafted will is analogous to the adage: an ounce of prevention is worth a pound of cure.
Please note that it cannot be stressed enough how important it is to seek the guidance of an attorney regarding the formation of wills. In fact, a well-written will distributes our property to the survivors we choose, like making sure your ’69 Camaro goes to your brother, your coin collection goes to your son, and your ’75 Thurman Munson baseball card goes to your best friend. dude. since childhood. However, without a will, ‘gifts’ are unlikely to be given. In fact, in California, if you die without a will, then state law, not you, chooses how all of your assets will be disposed of upon your death. For example, if a married person with no children but surviving parents dies without a will, then half of his estate will go to his surviving wife, and the other half will go to his surviving parents. That’s it. So the car he wanted to give his brother, and the collection of baseball cards he wanted to give his best friend, may never happen.
So why a lawyer? And not a preprinted form from a stationery store or an online form from a website that advertises wills? As in all areas of law, there are many concerns related to the technicalities that are carried out correctly so that the will is valid when a person dies. An invalid will is the same as dying without a will. And sometimes parts of a will may not be valid without proper legal guidance. For example, let’s look at a common scenario: a person has a valid will drawn up where, among other things, he leaves his expensive coin collection to his older brother. A few years later, he and his older brother have a fight. So this person takes a pen and crosses out his older brother’s name on his will and writes down his younger brother’s name, believing that he canceled the ‘gift’ to his older brother and made a ‘gift’ of this coin collection to his younger brother. brother. Are you ready for this? It is possible that neither brother will get the coin collection. And it is possible that a contested will can be filed and drag on for a period of time.
The law regarding striking out a will is complicated. And often when a person picks up their own pen to draw up a will, problems arise. Therefore, attorney guidance As for the wording of the will, and even changes in the will, it is highly recommended. In case you’re curious, the coin collection could be distributed as if the person died without a will. So, if the man is only survived by his parents and his two brothers, then the entire coin collection can go to his parents. This is a big dilemma now for the parents if they have to choose who the coin collection should be given to.
Please note that the information above has been kept in its simplest form to help give you a basic idea of a situation that is important to the peace of mind of many people. As in many areas of law, an attorney understands and handles complexity well. Therefore, it helps to know that an experienced attorney is just a phone call or email away to help provide guidance.