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What happens if I don't have a Will,
Living Trust or Life Insurance |
Living Trusts
A Will and/or Living Trust and Life
Insurance are the first order of defense against life's
surprises.
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What happens if I don't have a Will, Living Trust or Life
Insurance?
The legal term for dying without a Will is "dying in testate".
If you do not specify through a valid
Will or Living Trust who
will receive your property, state law controls and generally
distributes your property to your spouse and/or your closest
heirs. This may or may not be what you intended. Furthermore, if
you fail to nominate a guardian for your minor children, the
state could appoint someone you don't trust as a legal guardian
of your minor children. Finally, by failing to appoint someone
to carry out your wishes, the state can appoint anyone to be the
administrator of your property, and the administrator may have
to pay certain fees or post a bond at the expense of
your
estate, before he or she can begin to distribute your assets.
What does a Will do?
A Will is the legal document that allows you to distribute your
property to those you choose. A Will allows you to designate
beneficiaries to receive specific items from your estate, and
other beneficiaries to receive everything else. For example, if
you want your house, your car, or your antique thimble
collection to go to a certain person or organization, you
designate that person or organization as the beneficiary.
Who's going to make sure that your antique thimble collection
goes to the proper person? The executor of your Will. The
executor's the person you designate to carry out your wishes. A Will also gives parents of minor children the chance to
nominate a guardian. The court makes
the final decision when
appointing a guardian for your children after your death, but
the court will usually accept your nomination. A guardianīs
legal responsibility is to provide for your childīs
physical
welfare.
What does a Living Trust do?
A Will comes into play only after you die, but a living trust
can actually start benefiting you while
you are still alive. A
living trust is a trust established during your lifetime and is
revocable, which allows for you to make changes. You will
transfer substantially all of your property into your living
trust during your lifetime, and any omitted assets can be
transferred into the trust at the time of death through the use
of a simple Pour-over Will. You should always make a Pour-over
Will at the time that you establish your trust.
What are the Differences between Wills and Living Trusts ?
Both Wills and Trusts are devices, which you can use to provide
for the distribution of your estate upon your death. Deciding
whether a Will or a Trust best fits your needs depends on your
circumstances. A living Trust is a popular alternative to the
traditional Will, but you should weigh
the advantages and
disadvantages of each before deciding on one form or the other.
What Happens At Probate Time ?
Under A Will: Subject to probate proceedings. Out -of-state
property requires probate proceedings
in that state, as well.Provides court supervision for handling beneficiary challenges
and creditor disputes. Becomes
public record at the time of your
death. Under A Living Trust:
Not subject to probate proceedings. Avoids the cost of a
second-state
probate proceeding where there is out-of-state
property. No automatic court supervision to deal
with disputes.
Remains private.
Tax Savings
The same tax-saving-provisions available in a Will, are
available in a Trust.
Management of your Assets
Under A Will: In addition to the Will, must use a Power of
Attorney or Conservatorship to manage assets. Allows you as the
grantor to manage the Trust assets as long as you are willing
and able. Under A Living Trust: Makes provisions for a successor
trustee to take over in your place.
Costs
Under A Will: Costs less to prepare a Will than a Trust. Cost to
probate a Will can be substantial.Under A Living Trust: Costs more to prepare, fund and manage a
Trust than to prepare a Will. But avoids probate costs if all
assets were held by the Trust.
TermLifeAmerica.com-
Lewis Fink is licensed as an insurance agent offering Life
Insurance in the following states:
Alabama - AL,
Arkansas - AR,
California - CA,
Colorado - CO,
Connecticut - CT,
Delaware - DE, District of Columbia - DC,
Florida - FL,
Georgia - GA,
Idaho - ID,
Illinois - IL,
Indiana - IN,
Iowa - IA,
Kansas - KS,
Kentucky - KY,
Louisiana - LA,
Maine - ME,
Maryland - MD,
Massachusetts - MA,
Michigan - MI,
Mississippi - MS,
Missouri - MO,
Montana - MT,
Nebraska - NE,
New Mexico - NM,
New Jersey - NJ,
New York - NY,
North Carolina - NC,
North Dakota - ND,
Ohio - OH,
Oklahoma - OK,
Pennsylvania - PA,
Rhode Island - RI,
South Carolina - SC,
South Dakota - SD,
Tennessee - TN,
Texas - TX,
Utah - UT,
Vermont - VT,
Virginia - VA, and
Wisconsin - WI.
Not all insurance products from all insurance companies are available in
all states.
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