What is a Will and Living Trust?

Diane Carbo

Sep 11, 2023 • 30 min read

Will and living trust

A will and living trust is an important legal document that can help ensure your assets are distributed according to your wishes after you pass away. Creating a will and/or living trust is an important step in estate planning.

A will is a legal document that states how you would like your assets to be divided after you die. It can also name guardians for any minor children.

A living trust is a legal document that states who will manage your assets during your lifetime and upon your death. It may include specific instructions regarding who should receive certain assets.

Creating a will and/or living trust is an important way to protect your family’s financial well-being and ensure that your assets are managed as you wish. It can also help reduce potential inheritance taxes and probate court costs.

Wills

A will is a legal document that outlines your wishes as to how your property and assets should be distributed after you pass away. A will also allows you to appoint an executor, or someone who will be responsible for carrying out the instructions within the will. It is important to create a will so that your wishes and belongings are managed the way you want them to be.

Creating a will is not something that needs to be done quickly, but it is always a good idea to have one in place. Generally speaking, wills should be created when you reach the age of majority (18 or 19 depending on your province), when you marry, or when you become a parent.

Having a will is important for a few reasons. First, it ensures that your wishes are respected and carried out after you pass away. Second, it allows you to designate an executor who will be responsible for carrying out the instructions within the will. Third, it can help avoid conflicts between family members or other parties that may arise after your death. Finally, it can help minimize estate taxes or other fees that may be applicable at the time of death.

Living Trusts: What They Are, How They Work, and Why You Need One

A living trust is an important document that enables you to designate control over your assets and possessions both during your lifetime and after. It is a legal document that outlines how your estate should be handled in the event of your death. While it is not a legal requirement to have a living trust, it can provide peace of mind in knowing that your wishes will be respected after you're gone.

A living trust allows you to decide who should receive your property and possessions after you have passed away. It also serves as an important protection against potential disputes about your estate by clearly outlining how the assets should be distributed. In addition, creating a living trust can help to reduce estate taxes and help to avoid probate, which is the process of establishing a will after a person's death.

In most cases, a living trust is created during a person's lifetime. This can be done with the help of a lawyer or other financial planner. The trust should be periodically reviewed and updated if necessary to reflect any changes in the trustmaker's wishes.

Benefits of Having Both Wills and Living Trusts

Having both a will and living trust is beneficial in several ways. It can provide maximum security for your assets, give you and your family peace of mind, and protect you from unnecessary costs.

A will ensures that your wishes are legally binding and enforced after your death. It can also prevent disputes among beneficiaries, provide clarity about what to do with your property, and minimize conflicts between family members. With a will, all your assets will be distributed according to your specific wishes.

A living trust provides protection while you are still alive. It can be used to manage your assets in the event you become incapacitated or incapacitated, eliminate probate costs if you die, and protect you from legal challenges. It can also provide greater control over who receives your assets upon death, as well as flexibility and tax benefits.

Having both a will and living trust is an important way to protect yourself and your loved ones. It will give you the assurance that all your assets will be handled according to your wishes, both now and in the future.

Disadvantages of Having Both a Will and a Living Trust

There are some potential drawbacks to having both a will and a living trust in place. One of the biggest potential drawbacks is that they can be more expensive than just a will alone. This is because both documents require the help of a professional, like an attorney or financial planner. Additionally, having two documents also means that you have to keep them updated more frequently than just one document. This can take more time and effort.

It is also important to remember that having both documents in place does not replace the need for other estate planning documents. These can include powers of attorney designations, health care directives, and more. These additional documents can add more time and cost, so it is important to factor those costs in as well.

Who Should Have a Will and Living Trust?

Having a will and living trust is important for everyone, regardless of age or financial situation. If you are 18 or older, a will can help protect your assets and make sure that your wishes are carried out in the event of your death.

Living trusts are also recommended for those who have accumulated substantial assets, as they allow these assets to be managed upon death without going through probate court. A living trust can also provide a level of protection from creditors, which may not be possible with a will.

In addition, those who have minor children should also consider setting up both a will and a living trust to appoint guardians in case of their death or incapacitation. This ensures that someone who is trusted and capable will take care of the children if needed.

Lastly, anyone with complex financial affairs may benefit from a will and living trust to ensure that their wishes are carried out according to their desires.

When creating a will and living trust, there are several additional documents that you will need to have in order to ensure that the documents are properly executed.

These documents include:

Your current will. If you don't have one, you may need to create one.
A document outlining who you would like to name as the executor of your estate.
A document outlining which assets you would like to be included in your living trust.
A document outlining who you would like to handle the affairs of your trust should you become incapacitated.
A document outlining which beneficiaries you would like to receive the assets in your living trust after you pass away.
A document outlining which heirs you would like to receive your assets if your will is challenged in court.

It is important to remember that these documents must be properly executed by an attorney or financial planner to ensure that they are legally binding. Additionally, it is important to review and update these documents regularly to ensure that they reflect your current wishes.

Finding an Attorney or Financial Planner for a Will and Living Trust

Creating a will and living trust can be an important decision, so it is important to seek the advice of professionals who understand the process. Here is how to go about finding attorneys or financial planners who can help with the process:

Ask friends and family for a referral. It is always best to get a personal recommendation if you can.
Do your research. Use the internet to search for local attorneys or financial planners who specialize in wills and living trusts.
Get a consultation. It is good to have a meeting with an attorney or financial planner before making a commitment. Take advantage of any free consultations or discounted first-time meetings.
Read reviews. After narrowing down your options, read reviews and check their credentials. Make sure they have experience in wills and living trusts.
Make a decision. Once you have done your research, it is time to make a decision and hire an attorney or financial planner.

By taking these steps, you can ensure that you find the best legal or financial professional to help with your will and living trust.

Creating a will and living trust can be an important part of planning for your future. But it’s important to understand the costs associated with setting up these documents.

Generally, the cost of creating a will and living trust depends on a few key factors. First, the number of assets you currently have and the complexity of your estate will influence the total cost. If you have a large number of assets, or your estate is complex, it may take more time for an attorney or financial planner to assess your situation and create the necessary documents. Additionally, the type of professional you choose to help you, as well as the state in which the documents are created, can affect the total cost.

The national average cost of creating a will and living trust is between $1,000 and $3,000. However, some lawyers may charge more or less based on their experience and the complexity of your estate. Financial planners usually charge a flat fee or a percentage of your total assets.

Taking the time to make these important decisions now can save you money in the long run. Do some research to find out who is experienced and reputable, and then compare fees. That way, when the time comes to set up your will and living trust, you can feel confident in the professional you’ve chosen.

The Process of Creating a Will and Living Trust

Creating a will and living trust can seem like a daunting task. To make the process easier, here are the steps that you should follow:

Research your state's laws and understand what documents are required in order to create a will and living trust.
Consult with an attorney or financial planner who specializes in wills and living trusts. They can provide invaluable advice about which type of document is best for you.
Gather the necessary documents, such as a financial statement, family information, and any other documents that may be required.
Meet with the attorney or financial planner to discuss the details of your will and living trust.
Write down your wishes and have them put into a legally binding document.
Sign the document and have it notarized in order to make it valid.
Store a copy of the document in a safe place. It is also wise to have a second copy stored in a secure location away from the original.

Once the steps above have been completed, you will have a legally binding document that outlines your wishes after death. It is important to keep the document up-to-date and make sure changes are duly noted.

Potential Changes to Wills and Living Trusts

Life can change quickly, and it's important to keep your will and living trust current. As your circumstances change, so should your documents. Here are some potential changes you might consider making to your will or living trust:

Beneficiaries: If you get married, divorced, have children, or your existing beneficiaries pass away, you will need to update your beneficiaries.
Assets: If you buy or sell a home, acquire new property, or your assets change value, you may want to update the details in your will or living trust.
Executors: It’s a good idea to update the information about who is responsible for executing your will or living trust.
Trustees: If you appoint someone to be the trustee of your living trust, make sure to provide them with the documentation they need.

Updating your will and living trust regularly can help ensure that your wishes are carried out properly. To make sure your documents are current, consider having them reviewed every few years.

It is important to have both a will and a living trust in order to ensure that your assets are distributed according to your wishes. A will is a legal document that outlines what should happen to your assets after you pass away. A living trust is a type of document that allows you to control your assets even after you are gone.

Having both a will and a living trust can provide peace of mind knowing that everything is accounted for and will be taken care of according to your wishes. There are many benefits to having both documents, such as saving time and money, as well as reducing the chances of disputes over the distribution of assets. However, there are also disadvantages, such as the cost associated with creating and maintaining the documents.

Anyone who has assets should have a will and living trust in place to ensure that their wishes are followed. Creating these documents requires professional help, such as finding an attorney or financial planner who can guide you through the process. The cost of doing this will vary depending on your situation but is generally fairly reasonable.

The process of creating both a will and a living trust is relatively straightforward. It involves documenting your wishes, organizing any necessary documents, and making sure all of the paperwork is in order. In some cases, you may want to make changes to your will or living trust in the future, in which case you should consult a professional to make sure they are legally valid.

Overall, having both a will and a living trust is an essential part of ensuring that your assets are distributed according to your wishes. This is an important step to take in order to ensure that your wishes are followed and that your family is taken care of after you are gone.