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What Wills And Trusts Can Offer You

Wills and trusts are the cornerstones of a strong and reliable estate plan. The key to creating an estate plan with confidence is understanding what these areas of estate planning can offer you and how you can make the most of them. Instead of trying to create a will or trust on your own or online, let a skilled lawyer help you through your estate planning needs.

At Banjak & Associates, LLC, we have more than 30 years of experience helping clients throughout St. Louis with their estate planning needs. We are here to help you with all of your will and trust needs.

The Benefits Of A Will

Creating a will is a staple to any effective estate plan. A proper will can help you outline who you want to inherit specific assets after your passing. In addition to ensuring which loved ones will receive assets like real estate, vehicles, heirlooms and collectibles, you can also specify who you do not want to inherit anything from you. We can also help you create a living will, which specifies your medical wishes for when you are unable to speak or act on your own behalf.

A Trust To Meet Your Needs

A trust is a legal document that also passes on assets to a beneficiary, but there are some differences from a will. There are multiple types of trusts that grant you more control over how you distribute your assets. Two of the most common forms of trusts include:

Revocable trusts: These trusts can be changed while the grantor (the person who created the trust) is still alive, such as by changing the assets in the trust or who receives them.
Irrevocable trusts: These trusts cannot be changed, making them incredibly secure, but you also need to be certain that the arrangement of the trust you are creating is correct.

Trusts can allow you to distribute your inheritance before your passing and even help beneficiaries avoid some inheritance taxes.

Frequently Asked Questions About Wills & Trusts

To help you understand more about trusts and wills, here are the answers to some common questions our clients ask:

What are the benefits of a trust?

A primary benefit is avoiding probate, which can be a lengthy and costly process. Placing assets in a trust allows them to be transferred directly to beneficiaries, requiring no probate court intervention.

Trusts also provide greater control over the distribution of assets. They allow you, the grantor, to set specific terms and conditions for how and when beneficiaries receive their inheritance.

Additionally, trusts can protect assets from creditors and facilitate privacy, as they are not part of the public record. A well-developed trust can also provide for beneficiaries with special needs without affecting their eligibility for government benefits.

Is there an advantage to using a trust instead of a will?

Since trusts can reduce or prevent the need for probate, they can lead to a quicker and more private distribution of assets. They also allow for more detailed and flexible planning.

Trusts can also lower estate taxes for larger estates by removing assets from the taxable estate, a potentially huge advantage for high-asset individuals.

Can a trust override a will?

In certain circumstances, yes. The assets held within a trust are not subject to the terms of a will. Instead, they are distributed according to the trust’s instructions, meaning that the trust takes precedence over the will for the assets it contains.

It is important to make sure all intended assets are properly transferred to the trust to avoid conflicts between the trust and the will.

If I have a trust, do I also need a will?

Even with a trust in place, having a will still makes sense. If you have young children, you can use your final will to appoint a guardian to watch over them in case of tragedy.

If you have a trust, another type of will – a pour-over will – is essential. It helps ensure that any assets not already included in a trust are transferred to that trust upon your death. It acts as a net, capturing overlooked assets and directing them into the trust for distribution.

Does a living trust avoid estate and probate taxes?

Not necessarily. While assets in a revocable living trust are not subject to probate, they are still counted as part of the taxable estate and, as such, are subject to taxation. It is wisest to develop a strategy for minimizing taxes with attorney guidance.

What is the difference between a will and a trust?

A will and a trust serve different purposes in estate planning. A will is a legal document that outlines how a person’s assets should be distributed after their death. It goes into effect only after the person dies and must go through probate, a court-supervised process.

A trust, on the other hand, is a legal arrangement allowing a trustee to manage and distribute assets on behalf of its beneficiaries. Trusts can take effect during the grantor’s lifetime, offering an efficient and private way to manage and distribute assets.

Why do I need a trust if I can just title all assets in joint ownership to avoid probate?

First, such a strategy may not be sufficient for a comprehensive estate plan. Joint ownership only applies to assets that are jointly owned and automatically transfer to the surviving owner upon death. It does not address the distribution of other assets or provide the same level of control and flexibility as a trust.

Additionally, joint ownership can create complications if the surviving owner is unable to manage the assets or if there are disputes among beneficiaries. A trust can provide a more comprehensive and flexible solution for managing and distributing assets.

What is the difference between a will and a living will?

They serve completely different purposes. A will outlines how assets should be distributed after you pass and allows you to appoint guardians for minor children.

A living will, a type of advance health care directive, outlines your preferences for medical treatment and end-of-life care in case of incapacitation. A living will has nothing to do with asset distribution, but it is an invaluable health care and estate planning tool.

Is there a way to prevent my will from being contested?

A properly drafted will, executed according to Missouri law, can leave a few openings for a contest, but there are other steps you can take. Here are four to consider:

Add a no-contest clause: Discourages will challenges with the threat of disinheritance
Prove mental competency with a medical exam: Documents sound mental capacity at the time you signed the will
Video the signing: Reinforces the fact that you had sound mental capacity and acted on your free will
Create a letter of intent: Informs your family of the reasoning behind your estate planning decisions

Guidance from a seasoned estate planning attorney can also help to prevent will contests. They can help you draft and execute your documents properly, potentially resulting in gapless protection for your heirs and assets.

Create A Plan You Can Count On

If you do not have a will or trust in place for your estate plan or have not updated it in some time, now is the best time to reach out to our Missouri team for the help you need. Call us at 314-886-5001 or email us here to schedule your initial consultation today with an attorney you can rely on.