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Using a Last Will and Trust

A last will and trust, also known as a "living trust," is a written document that allows you to specify how your assets will be distributed after your death or incapacitation. This type of estate planning tool provides a way for individuals to control the distribution of their property, rather than relying on the laws of intestacy (which dictate who inherits property when someone dies without a will). By creating a last will and trust, you can ensure that your wishes are carried out, minimize tax liabilities, and avoid the possibility of disputes among beneficiaries.

What is a Last Will and Trust?​

A last will and trust is a complex estate planning document that typically includes two main components: a "will" and a "trust." The will outlines who will inherit specific assets, such as real estate or personal property, after your death. The trust, on the other hand, holds and manages assets, including investments, businesses, and financial accounts, for the benefit of beneficiaries.

Benefits of Using a Last Will and Trust​

Using a last will and trust provides numerous benefits, including:

  • Control over asset distribution: By specifying how you want your assets to be distributed after your death or incapacitation, you can ensure that your wishes are carried out.
  • Tax savings: A well-drafted last will and trust can minimize tax liabilities by reducing estate taxes and avoiding probate fees.
  • Dispute prevention: This type of estate planning tool helps avoid disputes among beneficiaries by clearly outlining who inherits specific assets.

Key Components of a Last Will and Trust​

A valid last will and trust must include the following key components:

  • Grantor's name: The name of the individual creating the will and trust.
  • Executor/trustee: The person or entity responsible for administering the estate and carrying out the instructions outlined in the will and trust.
  • Beneficiaries: Those who inherit specific assets, such as family members, friends, or charities.
  • Asset identification: A detailed list of assets, including real estate, investments, businesses, and financial accounts.

Common Mistakes to Avoid When Using a Last Will and Trust​

When creating a last will and trust, it's essential to avoid common mistakes that can render the document invalid. These include:

  • Failing to update the document: Failing to revise the will and trust as your assets or personal circumstances change.
  • Using ambiguous language: Using unclear or vague terms that may lead to disputes among beneficiaries.
  • Not consulting an attorney: Failing to seek professional advice from a qualified estate planning attorney.