Wills And Trusts
Last Will and Testament, or Will
One of the most valuable gifts we can leave our loved ones after we have passed is peace of mind. In estate planning one of the tools that is often used is a will. A will goes through probate; the term probate means "proving the will". Having a will in place assures that your estate is distributed as you wanted.
Without a will in place, the State of Michigan has a set of laws that take a best guess about you will receive your estate. Wills nominate personal representatives. Then the personal representative of your choosing will guide your will through probate court. Most often this personal representative will make decisions surrounding your funeral arrangements. Wills are a basic yet key part in a well drafted estate plan; a starting point to ensure your estate is distributed as you desire.
Unlike a will that doesn't go into effect until your passing whereas a trust takes effect as soon as it has been created. There are a variety of trusts available however the most common type to have in place is a Revocable Living Trust.
A Revocable Living Trust is a trust that can only be changed by you, the person who has created it. It is designed to avoid probate court. A living trust lowers the estate administration costs. A living trust provides protection to the trust’s beneficiaries and is harder to challenge then a will. If you are to fall ill a living trust will keep the assets the trust owns out of probate. A well done Revocable Living Trust hopes for the best and can handle the worst. It protects you and your heirs if bad life events happen.