A will can cover various types of assets you’ve accumulated over your lifespan. However, there are exceptions to what your will can cover. You must create a trust and estate plan alongside your will to cover everything you need. If you need help creating a will, trust, or estate plan, reach out to one of our qualified team members. A Woodland Hills Trust Attorney can help you understand what documents you’ll need alongside your will to ensure all of your assets are properly distributed to your designated beneficiaries. With our wide range of skill sets, we will assure you are properly prepared for the future.
What should I put in a trust rather than a will?
Furthermore, wills can cover a lot of things, but what they cannot cover can be covered in an established trust or estate plan. A trust is a fiduciary agreement where a trustee holds assets on behalf of a beneficiary. People set up a trust alongside a will to ensure their assets are properly managed for their beneficiaries to inherit. A will should not cover the following:
- life insurance policy
- retirement accounts
- any properties
- your funeral arrangements
- funds for long-term care for a disabled family member
Individuals sometimes believe a will covers everything they need. However as listed above, these components should be in a trust rather than a will. Your IRA, life insurance policy, and retirement accounts can only be transferred through a designated beneficiary. Certain types of properties cannot be transferred through your will. If you own a property with joint tenancies, your will cannot cover this. Any remaining shares of these shared properties will be left to the surviving partner. Properties should be left to designated beneficiaries. If you pass down a property through an estate plan or a trust, you can avoid probate. If you leave a property you have sole ownership of, it could be stuck in probate for a long time. If you have a child or a family member with a disability who you intend to make your beneficiary to ensure their long-term care is provided for, you should create a living trust for them. You should not leave pertinent care details in a will. By creating this, you can leave a specific sum of money for their needs. unfortunately, you cannot leave anything for your pet to inherit after you die. However, you can create a trust to leave a certain amount of money designated for your pet’s essential needs. You would have to name a trustee who is in charge of using the money in the trust to take care of your pet. nevertheless, these types of assets should not be left in a will, but rather in a trust.
One of our qualified team members can assist you with ensuring your assets are properly protected after you die. We are determined to successfully set up a will, trust, and estate plan to ensure all grounds are covered in protecting your assets.