Skilled Wills And Trusts Representation

When planning for your future, wills and trusts are essential for proper estate planning. What’s the difference between a will and a trust? At Artherton Law, you can find the information you are looking for. I am Angela Artherton, a lawyer dedicated to helping clients throughout northern Arkansas and southern Missouri.

The main difference is in the timing. A will takes effect after someone’s death, whereas a trust can be used either while the person is still living or after the person is deceased. Below is more in-depth information on the difference between wills and trusts, and how I can help you in both of these areas.

General Information About Wills

One of the most important things to remember about having a will is that if you die without one or other estate planning tools designating beneficiaries for your assets, the state determines how your property and assets are divided. The state will also decide who will take over your debts, which is never a comfortable topic to discuss. Most people will agree this is a scary thought, but not everyone thinks far enough ahead to create a will.

While people always hope for the best, fatal accidents happen in a multitude of circumstances and for people of all ages. In short, a will determines how you want your affairs handled and how you want your property distributed. It can also include factors such as how you’d like the burial and funeral to be arranged and who will care for your children if they are minors. Wills can even appoint a person to handle a trust for these minors until they reach a certain age. All wills are public record and are handled by the probate court.

What To Know About Different Types Of Trusts

Trusts, like wills, distribute assets and money to beneficiaries. One of the primary differences between the two is how those assets distribute. In a trust, a grantor (the person who makes the trust) has more control over when and how the assets go to the trustees. A grantor can often disperse these assets before their passing, so they can enjoy seeing their loved ones receive their inheritance. There are multiple types of trusts that can create different levels of control for a grantor.

Revocable Trust

Owners of revocable trusts can (during their lifetime) alter, amend or terminate these trusts at any time. These are considered part of the grantor’s taxable estate.

Irrevocable Trust

An irrevocable trust is a trust that the grantor does not control and cannot alter. In this type of trust, the grantor has given up all control interest in the trust assets. Because of this, these assets are not included in the grantor’s taxable income. Additionally, these assets are not included in the grantor’s estate.

Charitable Trust

This type of trust is exactly as it sounds – it’s a trust set up to benefit one or more charities for a lifetime or for a specified amount of time. These are usually set up to provide regular recurring payments to these charities. If there are funds remaining at the end of the specified period, these benefits are then transferred to the grantor’s noncharitable beneficiaries such as family members.

Special Needs/Purpose Trust

These trusts typically are established to provide or to supplement care for someone with a disability in a way that does not disrupt the person’s ability to receive certain government benefits or participate in certain programs related to the person’s disability. They are not limited to that purpose, though. These trusts can be established for just about any other purpose requested by the grantor, too.

Missouri Wills And Trusts FAQs

Is a will or a trust, or maybe both, best for your estate plan? As an experienced estate planning attorney, I can guide you through the pros and cons of each to help you decide. To get you started, here are answers some of the most common questions I get from clients.

What is the difference between a will and a trust?

A will is a legal document that outlines how you want to distribute your assets after you die and who you wish to appoint as guardians for your minor children. A trust, on the other hand, is a legal agreement where a trustee oversees and handles your assets for your beneficiaries. A trust can take effect while you are alive and continue after you pass. Trusts can also offer privacy and help your assets avoid probate.

How do I know if I need a trust, and how should my estate plan be structured?

Determining if you need a trust and structuring your estate plan depends on factors like:

• The size and complexity of your estate
• Privacy concerns
• Specific goals such as asset protection or charitable giving

I can help you choose the right type of trust, such as a revocable living trust or an irrevocable trust, to help you meet your needs and goals.

How are wills and trusts managed? What goes into establishing a trust?

Wills are managed through probate, where an executor administers the estate. Trusts are managed by a trustee according to the terms set in the trust. Establishing a trust requires identifying which assets you wish to include in the trust, selecting beneficiaries, and appointing a trustee. You typically need detailed information about your assets and clear instructions on how a trustee should manage and distribute them.

What happens if I die without a will?

If you die without a will, the state of Missouri will distribute your assets according to its intestacy laws. Typically, this means your closest relatives, such as a spouse and children, will inherit your assets. Without a will, you have no control over how the state distributes your assets, which may not align with your wishes. By creating a will, you can make sure that your assets get distributed to the right people.

How can an estate plan help avoid probate and protect beneficiaries?

An estate plan can help avoid probate by using trusts, which bypass the probate process and allow for direct asset transfer to beneficiaries. This can help you save time and maintain privacy. Additionally, an estate plan can include measures that can protect beneficiaries, such as  age restrictions for inheritance or setting up trusts to manage assets responsibly on behalf of minors or individuals with special needs.

Get The Guidance You Need Today

If you are looking to start developing or updating your wills or trusts, contact my office today. Call 417-419-9518 or email me here to schedule your initial consultation today.