Close Menu
    Facebook X (Twitter) Instagram
    iEnglish Status
    • Home
    • Status
      • Whatsapp Status
      • Wishes
    • Caption
      • Instagram Caption
      • Whatsapp Status
      • Shayari
      • Whatsapp Status
    • Quotes
      • Good Morning
      • Birthday
      • Diwali
      • Pakistani Mehndi
    • News
    • Business
    • Lifestyle
    • Fashion
    • Health
    Subscribe
    iEnglish Status
    Home»General»4 Things You Need to Know About Wills and Trusts

    4 Things You Need to Know About Wills and Trusts

    Gloria ButlerBy Gloria ButlerFebruary 4, 2022No Comments4 Mins Read0 Views

    There comes a time when people begin to consider what they will be leaving behind when they die. It’s not uncommon to hear of rifts in families caused by bickering over assets left behind. One of the best ways to avoid this is to write a last will and testament.

    What Is a Last Will and Testament?

    A last will and testament is a legal document that is used to communicate a person’s final wishes on what should be done with that person’s assets. A last will and testament essentially dictates whether the estate of the decedent shall be passed to another person, or if it shall be donated to charity. A person, through a last will and testament, may also communicate who shall gain custody of descendants. A properly-prepared will also reduces the tax liability that descendants have to pay in order to inherit the assets left behind.

    How Does a Last Will and Testament Work?

    The person writing a last will and testament is referred to as the “testator”. A last will and testament contains instructions from the testator on what to do with the testator’s estate, assets, and (if the testator has a child who needs care) custody of descendants. A will names a still-living person as the “trustee”, who is responsible for carrying out the wishes of the testator as indicated in the last will and testament.

    The probate court is the supervising authority that ensures that the executor carries out the wishes of the executor. When the testator dies, the executor must now carry out the instructions written on the last will and testament.

    What a Last Will and Testament Means for Descendants

    As mentioned earlier, a last will and testament outlines how a testator’s assets should be distributed when the testator dies. In essence, the testator is able to define who gets what and how much, and ensures that the decedent’s assets are kept away from people they don’t want their assets to be given to (such as estranged relatives). This also means that descendants will no longer need to deal with probate court in order to inherit the assets that the testator intends to leave to them. Descendants will be able inherit the asset without having to spend money on taxes A testator may also choose to give some assets as gifts in order to offset the estate taxes that descendants need to pay.

    What Happens When an Individual Dies Without a Will?

    When a person dies intestate (without a will), the state shall now oversee the dispensation of the decedent’s assets. This is usually done through a set formula where in half of the decedent’s estate is given to the spouse, and the other half is given to the children. The matter becomes more complicated when the children the decedent leaves behind are minors. This is when the probate court appoints a guardian to look after the children. Dying without a will means that your heirs could spend months in court in order to settle your estate. Besides the estate taxes that your heirs need to pay, they will also have to pay an additional 2% to 4% of the value of the estate being distributed for attorney and court fees.

    How Does a Will Differ From a Trust?

    While both wills and trusts are legal instruments that are used to bequeath assets to heirs, they differ in terms of the number of parties involved, the period at which they become active, and the involvement of probate court.

    • Will only become executable upon the death of the testator while trusts are active from the day they are written.
    • Wills deal only with the testator and the successor trustee, while trusts deal with a trustor, trustee, and a beneficiary.
    • Finally, with wills, there is no need to go to the probate court, but if there is no will to execute, there are no remedies to minimize the involvement of the court, while with trusts, if a property is not assigned to a beneficiary, a Heggstad Petition may be filed in order to avoid probate court.
    Follow on Google News Follow on Flipboard
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Gloria Butler

    With years of experience in the digital marketing industry, I have honed my skills in creating high-quality content that resonates with my audience. I believe that everyone deserves to have access to status messages that uplift, motivate, and inspire. That's why I take pride in curating my content to ensure that each message resonates with you, our readers.

    Related Posts

    Make Your Name on YouTube: Buy YouTube Subscribers

    January 3, 2025

    Transform Your Home with a Professional Loft Conversion Company

    October 28, 2024

    Finding Hope: A Guide to Overcoming Suicidal Thoughts

    September 19, 2024
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Latest Posts

    Complete 50 States Road Trip Checklist & Map

    May 21, 2025

    Hanoi Guide 2025: What to Eat, See & Explore

    May 21, 2025

    Hidden Face DP for Girls – Unique & Beautiful Picks

    May 21, 2025

    Maldives Itinerary Guide: What to Do & Where to Stay

    May 21, 2025

    Perfect 3 Days in Bangkok Thailand: Must-See Itinerary

    May 21, 2025

    How to Start as a Travel Blogger in 2025 (Step-by-Step)

    May 21, 2025

    Staying Connected: Why Walkie-Talkies Still Cut the Mustard

    May 21, 2025

    Fantastic Women’s Clutches that Make Great Presentation Gifts for Fashionistas

    May 20, 2025

    Decor Styling 101: Pairing Artificial Flowers with the Right Home Accessories Items

    May 20, 2025

    How to Budget Your Funds When Playing Color Prediction Games

    May 18, 2025
    © Copyright 2025, All Rights Reserved
    • Home
    • About Us
    • Privacy Policy
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.

    Go to mobile version