Should Florida Retirees Choose A Will Or A Trust?
If you are just getting started on your estate plan, the sheer number of estate planning documents you can draft is astounding. What is the difference between a living will and a living trust? What are pour-over wills and holographic wills, and what could be bad about an “I love you” will? It sounds like the least intimidating kind of will. Who knew that a power of attorney is the name of a document, and what is the difference between a springing power of attorney and a durable power of attorney? It is even worse when the same documents go by different names. People sometimes refer to the same document variously as a living will, healthcare proxy, medical power of attorney, or advance directive. The good news is that you do not have to address all of these estate planning matters at once. You can start with a few simple documents that express your wishes about your property and other important matters. To get started, contact an Orlando estate planning lawyer.
Everyone, No Matter How Poor, Needs a Will
It is easy to procrastinate writing your will until you turn 40 or 50 or until you own a house, have a certain amount of money in the bank, or get married or have a child. In fact, the time to write a will is now, no matter how little property you own, and even if no one else depends on you financially. Your will also includes instructions about the final disposition of your remains; this way, your surviving relatives don’t disagree about where you would have wanted to be buried or where to scatter your ashes. If you have minor children, your will should designate someone as your children’s legal guardian in the event that you and your spouse both die when your children are minors. Your will is also the place to indicate which relatives do not inherit any property from you.
A Trust Can Save You Money on Taxes and Simplify Your Transfer of Property
The most visible web content about trusts makes it sound like they are for wealthy people who can afford to spend their resources on the dodging of tax collectors, but this is not the whole story. You can set up a revocable trust to pay for your own future care; you don’t get any tax breaks on it, but at least you know that there is a legally binding document instructing someone to pay for your medical care and housing expenses according to your wishes. If you set up an irrevocable trust, the property in it no longer legally belongs to you, so you don’t pay taxes on it, and creditors cannot access it if they seek debt repayment from your estate. Best of all, the beneficiaries can begin receiving their inheritance starting now, while you are still alive.
Contact Gierach and Gierach About Estate Planning Basics
An estate planning lawyer can help you draft a will or establish a revocable or irrevocable trust. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.
Source:
specialneedsalliance.org/the-voice/a-short-primer-on-trusts-and-trust-taxation-2/
