Questions and Answers Regarding Estate Plans
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- What happens if I die without a will?
With certain exceptions, your possessions are divided according to state law among your closest relatives.- What can I accomplish by making out a will?
You can choose who is to receive your property; select someone to serve as personal representative (formerly known as executor); and appoint a guardian for your children under age 18.- If I have a will, do I avoid probate?
No. Whether or not you die with a will, your property will usually go through a probate, which is a process through which the probate court oversees distribution of your assets. If there is a will, the initial purpose of the probate is to prove that the will is valid.- What are the potential advantages of having a revocable trust?
- Assets in the trust at the date of your death are not subject to probate administration.
- A trust offers privacy as to who inherits the estate, when they receive it and how much they receive.
- Alternative management is available if you become incompetent or disabled.
- When you die, the Successor Trustee automatically steps in and begins to manage the estate without the delay or "red tape" associated with probate estates.
- Annual court accountings, with accompanying legal fees, are not required as they often are with a conservatorship or a trust created in a will.
- The Trustee can collect life insurance proceeds payable to the trust immediately after you die and can use them to care for family members without needing court approval.
- A trust can avoid or reduce taxes at your death.
- Provide for a "special needs" child while keeping that child qualified for Medicaid and Social Security.
- Keep a farm or cottage in the family.
- Protect children of prior marriages.
© 2000 Jordan Law Office
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