Monday, January 16, 2012

Myths About Wills & Trusts...

There are a number of things that people often assume about wills and trusts, and sometimes these assumptions can cause problems. With this in mind, we'll begin a short series of listing some of the more common myths associated with wills and trusts.

For a start, many people think if they die without a will, everything will go to their spouse...

Well, this is not necessarily true. If you don't have a will, your estate is distributed according to the intestacy statute and in some cases, it could be divided between your spouse and your children. This issue is especially relevant if you have children from a previous marriage.

Wednesday, January 4, 2012

Wills versus Trusts

People often ask about the differences between a will and trust, so here are some general contrasts...

A will does not avoid probate.  A trust can avoid probate, but only if the trust is properly funded.   A will only comes into effect when you pass away.  A trust can hold assets while you are alive.  A trust can be useful if you have property out of estate, as real estate is governed by the probate rules where it is located.  

As such if you own 3 pieces of property, each in a different state, if they are not owned by a trust, you are looking at three different probate procedures. For added perspective, you might review a related article on our website.