As humans, we are always worried about ourselves and our loved ones, and this is natural. It is also natural to want to ensure that our people are cared for after we are gone. Many people do so through a will.
A will is a part of estate planning. It is the process of creating a plan for the distribution of your assets after incapacitation or death. Your assets can include your home, car, real estate, bank accounts, insurance and personal possessions. Through estate planning, you are ensuring that your assets are divided and distributed as you wish while guaranteeing that the least amount of money is paid in taxes, legal fees and court costs. Estate planning has so many benefits, which include minimal transfer taxes, protection of your children, wealth and prevention of conflicts within the family. Estate plans are made to fit your situation; there are many options in estate planning, including a trust.
A trust in estate planning is a fiduciary agreement that determines how the assigned assets in the trust will be handled by a third party or trustee. The trustee, be a person or firm, will certify that the assets of the estate plan are managed to your wish. The easiest, yet most important, step of creating trust is naming it. Make sure it is an easy name to remember and reflects the trustee(s) of it such as the family. The majority of those who create a trust usually have a situation in which they want to establish a financial plan and care for minors or dependents with disabilities. There are other cases when one may need a trust, but not everyone needs one. It is best to consult with a legal professional about your specific needs and wants. If a trust does seem to be the best option, you should consult with your lawyer or attorney about which type of trust you may need. These include:
- Joint Trust: established by two people, typically a married couple. Both have control of the assets. When one dies, the other becomes the trustee.
- Testamentary Trust: created in a will. It is enacted after death and only outlines how the trust will be set up once you are deceased.
- Living Trust: created while you are alive. It determines a trustee who will manage the distribution of the assets to the beneficiary or beneficiaries.
- Revocable Living Trust: created while you are alive and is open to be changed or revoked.
- Irrevocable Trust: nothing can be changed or revoked after the trust is established, whether you are alive or deceased.
There are many things to know about estate planning and the variety of options available to you. We recommend reading our Frequently Asked Questions blog about estate planning. However, if you are seeking more personalized answers, we recommend consulting the professional legal team at Mestayer Law Firm, PLLC, the best law firm for the people of Pascagoula. You can call us at (228) 762-1193, or email us at elliot@mestayerlawfirm.com.
No representation is made that the quality of legal services performed is greater than the quality of legal services performed by other lawyers
This article does not create an attorney-client relationship. I am licensed to practice law in Mississippi and have based the information presented on US laws. This article is legal information and is for entertainment and informational purposes only and should not be seen as legal advice. You should consult with an attorney before you rely on this information. Any information provided in this blog is accurate and true to the best of my knowledge, but that there may be omissions, errors or mistakes.