Generally, there are two basic types of Wills: (1) Simple Will; and (2) Pour-Over Will. A Simple Will is a written document that names guardians for your minor children; and states what will happen to your property after you die.

Like a Simple Will, a Pour-Over Will is a written document that names guardians for your minor children, but it is different in that instead of being a standalone Will, it works in conjunction with an RLT, acting as a “clean-up” document, used to put into your RLT assets you might have forgotten to.

Probate Guarantee. Wills always go through a process called probate. Probate is a court-supervised proceeding in which a judge will first authenticate a Will (confirm the person making the Will was mentally competent, did not write the Will under duress, etc.), and then divide that person’s estate up according to the terms of their Will. Probate is not ideal, as it is expensive (approximately 4-5% of a decedent’s assets gets lost in legal and court fees; time-consuming (can often take up to a year or longer before beneficiaries receive their inheritance; and is public (any member of the public can access a Will).

No Incapacity Planning. A Will can only help you plan for death, not for incapacity. So if you become incapacitated (e.g., via car accident or a stroke), your family members will need to go through court to get authority over your finances—again, a public and unpleasant process.

No Guardrails. When you leave property to your children through a Will, your child will get everything outright on his or her eighteenth birthday (whether that be $5 or $5M), period. You cannot put guardrails in place to ensure your child spends the inheritance responsibly.

A revocable living trust (RLT) is a fancy Will, or, a Will on steroids. It is a written document which specifies who will receive your assets in case you die or become incapacitated. Description text goes here

Probate Avoidance. If you put your assets into a Revocable Living Trust, they can pass straight through to your Beneficiaries, bypassing the time, cost, and publicity of Probate.

Plan for Incapacity, in Addition to Death. In an RLT, you can plan not only for death, but also incapacity. In other words, you can authorize whomever you choose (usually a spouse or an adult child/friend) to step in and manage your property/assets if you ever become incapacitated.

Guardrails. If you pass your property down to your children through an RLT, you can have guardrails in place, to ensure the money is not improperly wasted or squandered. For instance, you can distribute money in installments over a period of time based on whatever conditions or time constraints you desire (e.g., My son, Ernie, will receive $50,000 on his 25th birthday, another $50,000 on his 30th birthday, and the final $50,000 on his 40th birthday; My daughter will receive my house on Main Street if and only if she graduates college; My son, Ernie, may withdraw any amount he wishes from the $1,000,000 at any time, as long as he is using that money for education or healthcare.

Trust Funding. To reap the benefits of an RLT, you need to take the extra step of “funding” your trust. Trust funding is the process of transferring title of the Trust assets from your individual name to your Trust’s name. How complex the process is depends on the type of asset. For instance, it is relatively simple to retitle checking and brokerage accounts; it is more complex to retitle real estate. If the RLT is not funded (and is not funded properly), the assets could be distributed in a manner you did not intend. You can fund your RLT yourself (we provide instructions) or we can do this for you.

No! That is the beauty of a Revocable Living Trust. You can modify or even void the Trust whenever and however you want (i.e., you can add or remove beneficiaries as you please). You don’t even need to file any separate tax returns. You can remain in complete and total control over your Trust at all times. In other words, placing assets into a Trust is like moving a five-dollar bill from your right pocket to your left pocket.

Whether you would benefit from a Will and/or RLT depends on a combination of your current situation and any future goals regarding what you want your Beneficiaries to inherit. Generally speaking, anyone who has minor children absolutely needs a Will, as it is the only document that can designate guardians for them. Whether you also need a Trust or whether a Will can suffice is a highly-fact specific inquiry that will depend on your unique situation, including your age, health, net worth, marital status, whether you have property in multiple states, and whether you have children. During your initial Appointment, Prachi will evaluate the foregoing and provide a recommendation.