Living Trust and Last Will Protecting Your Assets
If you are scared of your assets falling into the wrong hands, use legal documents to protect them. A lot of legal documents can be written to address any problems you will have with your assets. Some of them can be executed even before you die.
The first document is the Last Will. It should be noted that this is not a Living Will or advance healthcare directive. The last will is a document that was primarily used to state the last wishes of the dying author. The wishes are then executed after the author dies.
Decades later, the will became a legal document. It became accepted by the legal world as a means for managing assets when the author dies. The assets are listed and then distributed to the beneficiaries. However, there are conditions for the Will to be legal. First is that it should be made by the author without being under duress. The author should also be of sound mind and body.
If the Last Will has a trace of doubt, it will be submitted to the probate court for evaluation. The probate court then decides how the assets will be distributed. Probate courts are expensive and can take up a large part of the assets being distributed. That’s why Last Wills should be written with the help of a lawyer.
Another document that manages assets after death is the Living Trust. This document ensures that the assets don’t have to go through the probate courts. Unlike the last will, the trust requires three parties for it to be created. The first is the grantor. The grantor is the one who owns the assets. Next are the beneficiaries. Finally there is the trustee. One of the main reasons that property owners use the living trust is to avoid estate taxes.
By law, assets passing through a living trust are not taxed. If there is a tax it will be significantly lower than the estates distributed with the use of a Last Will. However, a trust is more fragile. Anything can revoke the trust. An example would be a separation or divorce. Even a divorce online can make the trust revocable.
Preparation is the key in ensuring the safety of your assets. You can choose any of the two documents however take note of the disadvantages. It also depends on the type of assets you are bequeathing.
The first document is the Last Will. It should be noted that this is not a Living Will or advance healthcare directive. The last will is a document that was primarily used to state the last wishes of the dying author. The wishes are then executed after the author dies.
Decades later, the will became a legal document. It became accepted by the legal world as a means for managing assets when the author dies. The assets are listed and then distributed to the beneficiaries. However, there are conditions for the Will to be legal. First is that it should be made by the author without being under duress. The author should also be of sound mind and body.
If the Last Will has a trace of doubt, it will be submitted to the probate court for evaluation. The probate court then decides how the assets will be distributed. Probate courts are expensive and can take up a large part of the assets being distributed. That’s why Last Wills should be written with the help of a lawyer.
Another document that manages assets after death is the Living Trust. This document ensures that the assets don’t have to go through the probate courts. Unlike the last will, the trust requires three parties for it to be created. The first is the grantor. The grantor is the one who owns the assets. Next are the beneficiaries. Finally there is the trustee. One of the main reasons that property owners use the living trust is to avoid estate taxes.
By law, assets passing through a living trust are not taxed. If there is a tax it will be significantly lower than the estates distributed with the use of a Last Will. However, a trust is more fragile. Anything can revoke the trust. An example would be a separation or divorce. Even a divorce online can make the trust revocable.
Preparation is the key in ensuring the safety of your assets. You can choose any of the two documents however take note of the disadvantages. It also depends on the type of assets you are bequeathing.
