Estate Planning and Wills

What is a Trust?

Legally, a trust can be defined as a legal instrument that creates an entity, whose identity is legally separate from that of the creator. Usually a party who creates a trust, the Trustor, transfers title to some or all of his/her property, in trust, to another person, the Trustee, to be held for the benefit of either the Trustor or one or more third parties, known as beneficiaries.

Designating Your Agent in Your Living Will

Quite simply, medical treatment decisions are not always easy. Such decisions almost always involve different amounts of information or knowledge, and often involve weighing the important facts of different sides of an issue. While creating a living will documents your wishes, you must also consider the person acting on your behalf.

Have You Created a Will Contest?

One clear thought to have in the front of your mind when you are preparing each provision of your will is this - have I created a will contest? That is, have I specified an act which is likely to lead to one or more of my relatives, or friends, or others to contest my will? Naturally, it is bad enough to be in probate court, probating your will.

Fundamental Elements of a Trust - How Do I Recognize A Trust?

Under most state laws, there are four elements which must be present to establish a trust:

Fiduciary Relationships

The relationship created by the formation of the trust between all of the parties is a special relationship recognized by law as a fiduciary relationship. A fiduciary relationship requires that some of the parties may have duties to the others in the relationship that are greater than one would normally have in a transaction with a neighbor or friend or associate.

Do I Really Need a Will?

Most people know that wills are legal documents that specify directions for the disposition of property after the death of the person who makes the will. Wills may also specify certain other instructions or wishes which can be followed by those people who are appointed to administer the estate of the person who dies.

Each State has Strict Rules Governing the Creation and Operation of Wills

Each state has a certain number of requirements that operate to specify how a valid will may be prepared and what steps should be followed to prepare a will which can be probated at a later date. The purpose of these seemingly strict rules is to ensure that the person creating the will follows certain formal requirements and appreciates the seriousness of the legal act they are performing.

Distribution of Wealth After Death

There are three ways to distribute estates after you or a loved one passes away.

Disinheritance

What happens if a person wishes to leave nothing to one of their heirs, e.g., one of their three sons? Many states' laws assume, in the absence of naming the son in the will, that the son was forgotten.

Different Types of Trusts

Revocable Living Trust: One of the most simple and popular trusts is the revocable living trust. The idea behind this type of trust is that you may wish to transfer your property to yourself, or to another highly qualified and trusted person, while you retain all of the rights of ownership during your lifetime.

LegalEASE Legal Corner