This depends on what you are looking to accomplish. If you are looking to avoid probate, gain greater confidentiality of your final estate plan and provide specific instructions as to how and when assets will be distributed to beneficiaries, a revocable trust may be an appropriate vehicle to include in your estate plan.

Will vs. Trust

Key Takeaways

• One main difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as you create it.
• Maintaining privacy: The terms of a trust are private, whereas wills become part of the public record.
• Having both a will and a trust is a powerful way you show your love. It will save your family time and money. And the heartache of squabbles if you were to die and not leave clear instructions on who is to get what.

Duties Of An Executor Before A Death Has Occurred

An executor has no duties or responsibilities before a death has occurred. However, you may want to discuss the nature of your estate with the person you’ve chosen to be your executor. This can help the person you’ve named as your executor feel prepared for the job, and ask any questions or express any concerns ahead of time.

If You Die Without A Will

The short of it: The court gives your closest surviving relatives everything, including assets and custody over minor children. (Also known as “succession laws.”) Your estate will still have to go through the probate process, and “intestacy laws” kick in to determine who gets what.

What Is “Probate”?

• Probate means that there is a court case that deals with:
• Deciding if a will exists and is valid;
• Figuring out who are the decedent’s heirs or beneficiaries;
• Figuring out how much the decedent’s property is worth;
• Taking care of the decedent’s financial responsibilities; and
• Transferring the decedent’s property to the heirs or beneficiaries.

In a probate case, an executor (if there is a will) or an administrator (if there is no will) is appointed by the court as personal representative to collect the assets, pay the debts and expenses, and then distribute the remainder of the estate to the beneficiaries (those who have the legal right to inherit), all under the supervision of the court. The entire case can take between 9 months to 1 ½ years, maybe even longer.

Types Of Property You Can’t Include In A Will

• Any property that is held in joint tenancy (owned equally by two parties), such as a house that you own equally with your spouse, since the property
• Any Trusts, retirement plans, or insurance policies that clearly state a beneficiary
• Stocks or bonds that are set to transfer to another party upon death (property for which a beneficiary has already been named)

A will can only govern the disposition of property owned in your sole name at the time of your death, including interests you might have in property such as a tenancy in common. It cannot address assets that pass directly to a beneficiary by contract or by operation of law such as life insurance policies or joint tenancies with rights of survivorship.

Certain assets may sit outside of your will. These include life insurance policies or qualified retirement accounts (401(k)s, IRAs, etc.) that have a beneficiary designation, as well as assets or accounts with a pay-on-death (POD) or a transfer-on-death (TOD) designation. These assets transfer directly to the named beneficiaries and are not subject to probate.