You have worked hard to build up assets for your family and want to ensure the people you choose receive as much of those assets as possible. Whether the focus of your plan is lessening your tax liability, protecting assets from younger family members who may not be financially responsible, or providing lifelong care for family members with special needs, a knowledgeable estate planning attorney can help you meet those goals.
A Metairie trusts lawyer can help you determine the right way to protect your assets and distribute them to your family members as you wish.
Understanding Trusts and Wills
Trusts are a valuable part of the estate planning process. In some instances, a well-written trust can help people avoid creating a will and going through the probate process. In other instances, a trust will work hand-in-hand with a will.
State law has specific requirements for wills, and failing to meet them can invalidate the will. Having a Metairie trusts lawyer review a will and recommend any necessary revisions can help ensure that it triggers any trust provisions.
To be valid, a will needs to be written and dated. It can be handwritten or typed. Typed wills are a better option because there is no question that it will be legible. The person making the will must sign it at the end and on every other page. Two witnesses and a notary must sign typewritten wills. Handwritten wills do not have this requirement, but they can be more challenging to prove.
One issue people encounter is writing a will that does not meet their wishes. While wills can be written in plain language, there are some instances where legal language and plain language can conflict. Having guidance from a lawyer when drafting a will can ensure that the language of the will meets the maker’s wishes.
Understanding Trusts
A trust is a legal entity that holds assets for the benefit of other persons or entities, known as beneficiaries. A trustee manages the trust. The persons creating the trust are known as trustors, settlors, or donors. They can spell out the terms or conditions of the trust and name the trustees, beneficiaries, and people who will succeed the trustees and beneficiaries.
Sometimes, a trust can replace a will and help families avoid probate. When well-constructed, a trust can distribute all the assets the settlors own when they die. However, not every trust focuses on avoiding probate. There are several different types of trusts, including:
- Living trusts
- Revocable trusts
- Inter vivos trusts
- Irrevocable trusts
- Special needs trusts
- Testamentary trusts
- Charitable remainder trusts
Trusts are a great way to leave or transfer assets to people without giving them full access and control over those assets. For example, divorced parents can opt to leave their property in trust for the benefit of their children, naming a third party as the trustee over those assets. Trusts also allow people to set limits on how the beneficiaries can spend the money and may protect assets from creditors.
The Benefit of Living or Revocable Trusts
Many families utilize living trusts to avoid probate. A living trust allows the settlor to add or remove assets during their lifetime. They can transfer assets to the beneficiary or name themselves as beneficiaries of the trust. Upon death, a successor beneficiary can take over the trust. This helps the family avoid probate. However, it does not protect people from any tax consequences associated with the inheritance.
Irrevocable trusts can be a viable alternative for people who want to avoid the succession process and estate taxes. A Metairie trusts lawyer may suggest enacting these trusts now to take advantage of expanded estate tax exemptions that may expire before a settlor passes.
Plan for the Future With a Metairie Trusts Lawyer
Estate planning is essential to ensure that you can direct the distribution of your assets, even after your death. One handy tool is the trust, which can help your family skip the probate process. There are several different types of trusts, allowing flexibility to meet your family’s needs. Schedule a meeting with a Metairie trusts lawyer to learn more about wills and estates.
