To protect yourself, you should consider the possibility of a conflict between your will and your trust. Below is a quick guide outlining what to do when this happens. More importantly, it has tips on how to avoid conflicts and problems down the road when your estate plan includes both types of documents.
A will is an irrevocable document that cannot be changed at a later date. A trust, however, is a revocable document that can be changed. When considering estate planning, you must be careful to include provisions in the will and trust documents to protect yourself from any potential future problems.
If you do not have enough assets to leave your loved ones with an income that they can live off of while they are alive, then they may end up having to go through probate court when you die. This can be expensive and time-consuming for them. To protect yourself, you should make sure that your will is clear on whether or not you are planning to leave an inheritance that is eligible for probate or if you want it to go directly into the trust.
Revocable Trust vs. a Will:
A will is an irrevocable document that becomes an official part of the court’s probate record. It cannot be changed once it has been filed for probate. If a will becomes invalid, it falls to the state to distribute your assets to your loved ones as outlined in the state’s default law. A revocable trust, by contrast, is a legal estate plan used in place of a will. It is a type of inter vivos trust.
The revocable trust agreement will continue to be effective after your death and cannot be changed. It should be clearly stated in your trust agreement the number of assets to go directly into it and which ones are not eligible for probate. This will help your family members not have to go through probate court.
The first thing that you should do before you complete a will or trust is to write down what you want each document to accomplish. This is an excellent way for you to make sure that your estate plan matches up with your goals and desires.
A will should be used to outline your wishes for property distribution. It should also include information on any trusts you have created and how they will be distributed. A revocable trust is a great way to avoid probate court costs and delays when distributing your assets. This is a good option for individuals interested in leaving their heirs with an income.
A Trust Is a Separate Entity:
It would help if you did not let your trust slip out of sync. If you are interested in leaving assets directly to the trust and not the probate court, then your will needs to be clear, so it does not become invalid. Your executor should also be aware of the terms of your trust agreement to ensure that it is followed properly.
If you have a revocable trust, but do not have any assets going into it, then you need to keep this a secret from everyone. A trust is a separate entity, meaning it does not become part of the will. If you include your revocable trust in the will, then this can cause a significant problem for your beneficiaries.
The trust will become part of the court’s probate process, and your loved ones must go through this to administer the trust.
Do You Need Both a Will and a Trust?
Some individuals serve as trustees over their trust agreement. This means they do not need to go to court when there is a trust distribution. If you are interested in leaving assets to your children or loved ones with an income, you would be better off not having a will. Instead of including assets directly in your will means for the trust, make sure that your will clearly states what will happen to them.
If this situation happens and your will is invalidated, the assets you have included in the trust estate plan will go to probate court. You can avoid this by including language in the trust agreement that informs your beneficiaries that it is not a part of the will.
A will and probate court are a nightmare when it comes to handling assets that are left behind. They can become expensive and highly time-consuming. A revocable trust is an excellent option for those who want to avoid probate court costs and delays when distributing their assets. You should be very clear about the terms of your trust agreement to avoid any future problems.