Over the years, many people have asked me to review their older estate plan. Usually, they say something like, “I need you to review my trust to make sure it’s still good.” When I review their plan, I find they don’t even have a trust. They think they have a trust, but they do not. It is remarkable to me how many people out there are walking around with simple wills, all the while believing they have a living trust. However, people commonly mix up wills and trusts. Therefore, I thought I would explain a bit more about “wills” in this issue of The Magazine.
First, while a simple will is a good idea, it amounts to nothing more than a “wish list” of where you want things to go after you have died. That’s pretty much it. With a will, the courts are still generally involved with the transfer of your assets. Also, if you only have a will, probate proceedings will likely be necessary. Assets will be distributed according to your will (assuming no contests and your will is valid).
Administering a will can be a very costly affair to your family. Imagine the need to sell off assets so your family can pay the court and attorney fees! Also, if all you have is a will that goes through the court process, your family loses all privacy as probates are public proceedings. In case of incapacity or disability, your will is of no use since it only goes into effect when you die. It’s generally easier to contest a will than it is to contest a living trust.
Even if you have your affairs in order, and you have a living trust in place, ask your parents if they have taken a close look at their documents. Do you really want to inherit their headaches? There are many people out there who think they have a living trust when in truth, all they have is a basic will. Don’t get me wrong, having a will is better than nothing, but it would be a shame if your goals aren’t accomplished because you or someone you know didn’t take five minutes to take a close look at their documents.
Please contact me for a free brochure on living trusts and/or estate planning. Better yet, call and make an appointment. For more information, please call 661-414-7100 or visit www.MansourLaw.com .