Frequently Asked Questions (FAQs)
Here are answers to some of the most common questions we hear about estate planning, wills, and trusts.
1. Do I need a will if I don’t have a lot of money or property?
Yes. Almost everyone can benefit from having a will. Estate planning isn’t just about money. A will is the only way to name a guardian for your minor children. It also allows you to decide who receives your sentimental items, which can prevent family disputes. Without a will, the state decides who gets everything, and the process can be more complicated and stressful for your family.
2. What happens if I die without a will?
If you die without a will (a situation known as dying “intestate”), the laws of your state will determine how your property is distributed. These laws, called intestacy laws, have a rigid formula for who inherits your assets, typically starting with your spouse and children. The court will appoint an administrator to handle your estate. The outcome may be very different from what you would have wanted.
3. Can I write my own will?
You can, using online software or holographic (handwritten) will provisions in some states. However, it is very risky. Each state has strict legal requirements for a will to be valid (such as the number of witnesses and the specific signing procedure). A simple mistake can invalidate the entire document, leading to the exact outcome you were trying to avoid. For such an important document, professional guidance is highly recommended.
4. Does a revocable living trust protect my assets from creditors?
Generally, no. Because you retain full control over the assets in a revocable living trust, those assets are still considered yours and are available to your creditors. More complex, irrevocable trusts can offer asset protection, but they come with significant restrictions, including giving up control over the assets. This is an area where you absolutely need expert legal advice.
5. How often should I review my estate plan?
A good rule of thumb is to review your plan every three to five years. More importantly, you should review it immediately following any major life event, such as a marriage, divorce, birth or adoption of a child, death of a family member (especially a named beneficiary or executor), a significant change in your financial situation, or a move to a different state.
6. If I have a living trust, do I still need a will?
Yes. As mentioned earlier, it’s highly recommended to have a “pour-over will” alongside your trust. This will acts as a safety net to transfer any assets you may have forgotten to fund into the trust into the trust after you pass away. It is also the document where you officially name guardians for minor children.
