States Abide by Different Laws
Know your state laws. Some states do not recognize certain types of wills such as a “(living) will”. This legal document acts as a guide to what your desires are for your medical decisions, should you not be able to verbally or write the doctors your immediate medical needs.
A (Living) Will
A “living will” works in conjunction with a durable power of attorney for healthcare along with your medical advanced directives. All of this pertains to your health status and personal medical decisions, should you not be able to express them to your medical staff.
The “living will” relieves children from making any medical decisions they feel they cannot make or live with concerning your end of life decisions.
We will now define some important terms: probate, wills, trusts and estate.
A personal property and real estate will designates where your property goes upon your death. When you write a will before you die, it frees up family members from having to go to probate court to determine where your assets go.
The probate court ends up getting paid significant monies from the proceeds of your estate before your family gets their share of the estate, money that should have gone to your children.
It is best to have an attorney draw up your will, but if you do not have the funds you can write a signed and dated “holographic will”. This will is better than not having any will at all. In this instance, you write in your hand, which children you want your belongings and money to go to, and how much.
If you have any assets, you need a will. If you do not decide through a will where you want your assets to go, your state decides for your family, through probate court where assets go. If you own any property such as a home, vehicle, a house full of furnishings, antiques, and even your pet (s), you need a living revocable trust.
An insurance trust owns your insurance policy when you die. Upon your death, this money goes into the trust and not the estate. Your children can still be named the beneficiary of your policy as protection from any estate taxes.
Your will, a legal testament, testifies your expressed wishes on what personal and real property, possessions, and money your children each receive upon your death.
You must name an unbiased individual as executor of your will. This executor executes your estate according to your wishes until all assets, personal and real estate distributes.
In Conclusion, the following shows the importance of setting up your will and revocable trust when you have children,
- Helps the children to avoid paying a lot of money to the state and the courts.
- Help the children deter any family arguments or fights over property.
- States your personal wishes, of which no family member can dispute upon your death.
- Relieves your children from difficult decisions.