Wills, Trusts, and Living Wills
 Death is inevitable. Although not always a pleasant topic to think about, we
will all face it at some point in time. Will you be prepared when it's your time
to go? The answer to that question may depend, in part, on whether or not you
have a valid, up-to-date will.
A Will is a document a person creates to make certain decisions which take
effect after death. Among other things, a will may be used to leave instructions
regarding:
- the disposition of your property;
- the payment of your debts;
- the selection of a personal representative for your estate; and
- the appointment of a guardian for your child(ren).
A will can be as simple or complex, as specific or as general, as is desired,
and can be tailored to your specific wishes. Although made in contemplation of
death, a will allows for peace of mind. Most people feel a sense of relief after
signing a will.
Why You Need A Will
The following is a partial list of what may occur if you do not make a will:
- Your property is distributed according to state law. This may be very
different from your actual wishes. In fact, if you die without a will and are
not survived by certain relatives, your property will go to the State.
- If you do not have a surviving spouse, a Court will decide who will be the
guardian of your child(ren). The Court may not make the same decision you would
have made.
- You lose the opportunity to select a personal representative of your estate. The personal representative
is the person who locates heirs, pays debts of the estate, finds and lists
property, and distributes the property in your estate. Your personal representative should be
someone who is familiar with financial matters and record keeping. A relative,
friend, or professional personal representative may serve as personal representative.
- Conflict may arise between family members. Each person in your family may
have a different idea about certain decisions you would have made, such as who
is to be the personal representative of your estate or the guardian of your child(ren), and may
argue with each other or contest such issues in court.
General Tips
- Consult an attorney to draft a valid will. In order for a will to be valid,
certain detailed requirements and formalities are necessary.
- Keep your will current. It is a good idea to review your will every year and
update it as necessary. Wills are revocable and may be changed or revoked.
- Keep your will in a safe place. It should be kept so that it can be easily
located when you die. Furthermore, you should tell your personal representative and/or at least
one close family member where your will is located.
Trusts
A trust is a legal entity which may be created by a will and established for the
benefit of designated beneficiaries. It is an instrument you may use to better
direct the distribution of your assets. Trusts can be used for many purposes,
such as conditioning a beneficiary's ability to receive money upon the happening
of a certain event or upon the attainment of a certain age. With a trust, a
trustee is selected by you to carry out the terms of the trust, and he/she/it
would hold a fiduciary responsibility to manage the trust's assets and income
for the economic benefit of the beneficiaries. Professional trustee services,
such as those offered by a bank, may also be used if so desired.
Living Wills
A Living Will is a document through which you may give advance instructions
about your health care preferences, such as the withholding of life-sustaining
medical treatment, to be followed in the event of an incurable or irreversible
condition that will cause death within a relatively short time and when you are
no longer able to make decisions regarding your own medical treatment. If you
understand your medical condition and the effect of the proposed medical
treatment, you will still be able to make your own decisions. If you are
unconscious or otherwise unable to make your own medical decisions, your Living
Will will control.
The information contained herein is necessarily general and limited in its terms
and should not take the place of advice of an attorney after consultation
regarding your particular case.
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