A common misconception is that a Will is the “end all be all” document that directs how assets are to be passed down after a person’s death. The truth is that there are significant limitations to Wills, and many Tampa-area families end up needing both a Will and a Trust to accomplish their goals.
Basics of Wills
A Will is a document that, after you pass away, explains your wishes for the distribution of your property, assets, and the care of minor children. In the absence of a Will, your wishes may not be carried out in a manner of which you approve. And, without a Will, heirs may end up spending additional time, money, and energy to settle your affairs. Worse, any disputes or issues of ambiguity could be settled by a judge who doesn’t know you or your wishes.
But, even if a person has a Will when they die, the estate will still need to go through Hillsborough County probate. This process can take anywhere from a few months to a few years, and your family will not be able to access their inheritance until it’s complete. During probate, the details of your estate also become part of the public record, and creditors and predators can come forth to prey on your beneficiaries. Finally, once the Executor gets approval to distribute your assets, all money and property will be given outright to heirs. There is no way to put “speedbumps” around the assets so they are not lost, squandered, or mismanaged by beneficiaries.
What Does a Trust Do?
A Trust is a legal tool that can hold assets for a third-party, namely heirs and beneficiaries. Trusts are created to provide greater protection for the Trust maker’s assets, and also provide the ability to have greater control over how assets are eventually distributed to heirs. For example, a Trust can be designed to distribute assets to adult children when they reach certain milestones such as turning 25, graduating college, or purchasing a house. This can help ensure the money lasts and is only spent on purchases that the Trust maker authorizes.
Finally, assets held correctly in a Trust do not have to go through probate, which means that heirs will have immediate access to the inheritance you wished to leave to them. And, since there’s no probate court involvement, the details of your estate stay private, which offers safety and protection to your beneficiaries.
Will or Trust…Which is Best for Me?
As you have learned, both documents may be necessary to accomplish your planning goals and ensure your assets are passed down safely and privately to your loved ones. Plus, having these documents in place is a simple way to spare your family from unnecessary court costs, lawyers’ fees, and conflict with other family members. If you have additional questions or want to know which planning strategies would be best for your family, contact us at (813) 438-8503 to schedule a consultation.