| What is a will? |
A will is a formal written document which leaves instructions for disposition of your assets after your death. |
| What happens if I die without a will? |
If you die without a will, your property will be distributed in the manner chosen by the state. This may, or may not, be similar to the way you would choose. |
| Who needs a will? |
Anyone who wishes to choose how their property will be transferred after his/her death should have a will. |
| What is the difference between a will and a living trust? |
The primary difference is that the living trust allows you to avoid or minimize the delays and costs of probate by transferring your assets to the trust before your death but allowing you to control and use the trust assets during your life. |
| Is it better to have a will or a trust? |
If you have a will without a trust or your trust is not properly funded, distribution to your heirs may take longer than with a trust and the costs and fees to probate the estate will generally amount to 4% to 6% of the total value of your estate in addition to any estate taxes. For example if you own your house free and clear when you die, and the house is worth $500,000 probate fees on the house alone could be $20,000 to $30,000. If the house was transferred to your trust before you die your estate would not have to pay these fees. |
| Should I set up joint accounts with my children's names ? |
Most advisors recommend not putting substantial assets in joint name with your children. Although joint tenancy will avoid probate it creates many potential problems. For example, if your child has any financial or tax problems, his/her creditors or the IRS could seize your accounts if they are in joint names. |
| What about life insurance? |
Unless life insurance is payable to your estate it will generally not be subject to probate. However, unless special care is taken to make sure that life insurance proceeds are excluded from your estate for tax purposes your estate will be taxed on the face amount of your life insurance policy. One way to avoid this result is the Irrevocable Life Insurance Trust (ILIT). |
| Is there any way to lower estate taxes? |
Through proper estate planning estate or inheritance taxes may be significantly reduced or even completely eliminated. |
| If I tell my children what I want to happen after I die, do I still need a will? |
Yes. Unless you have a formal will, the Probate Court will require that your assets be distributed in the manner chosen for you by the state. |
| If I write down instructions for my children, why do I still need a will? |
Because the probate court will only treat your written instructions as a will if the proper requirements for a will are met. |
| How do I make a will? |
You create a will by signing a formal legal document called a will in front of witnesses in which you instruct how you want to dispose of your assets after your death. |
| How much does a will cost? |
This depends on your own situation and requirements. |
| Can I make a will myself? |
Yes, but it is not recommended because unless the proper legal requirements are followed your will not be recognized by the Probate Court. |
