• Twitter
  • Facebook
  • LinkedIn
CALL US TODAY (212) 358-8044
Karpoff Affiliates
  • Home
  • About Us
    • Marilyn Karpoff
    • Our Real Estate Team
    • Associations and Memberships
    • In The Press
  • Senior Services
    • Senior Move Managers
    • Aging in Place
    • Our Senior Team
    • Senior Service Testimonials
  • Residential Services
    • Ready to Buy a Home
    • Ready to Sell a Home
    • Mortgage Calculator
    • Residential Listings
    • Rental Listings
  • Commercial Services
    • Commercial Investments
    • Commercial Debt & Equity Solutions
    • Commercial Listings
  • Contact Us
  • Blog
  • Menu Menu
will-trust-estate-planning

Wills, Trusts & Estate Planning

April 18, 2019/in Estate Planning, Retirement/by Marilyn Karpoff

This article is meant for informational purposes only and is not legal advice. Please consult an actual lawyer for your will, trust, or estate planning needs.

As you reach retirement age, it is important to make sure that your affairs are in order. Handling things such as wills, trusts, and estate planning can be tricky. You will want to consider hiring a lawyer or accountant to help you make sure everything is done correctly. Our goal is to introduce you to the basics.

Wills

What is a will?

A will is a legal document that expresses your wishes for what happens with your property after you die. You can name an executor (who makes sure the will is followed), a guardian for your children, and more. Say you want to leave property to your children, but they aren’t legally adults yet or you want them to only receive it at a certain age. You can set up some sort of property management to take care of that. You can even forgive debts, if you so choose.

What happens if you don’t have a will?

If you don’t have a will, then the state law will decide who gets your property. This often goes to your closest relatives, but if you don’t have any the property goes to the state. This is pretty rare. Any debts owed by the estate will have to be paid before the state will distribute the property.

Dying without a will is referred to as dying “intestate”.

What do you need to make a will?

It is possible to write your will yourself, or you could have an attorney draft one for you. For it to be legal it must be in writing, you must be at least 18 (though age varies state to state), you must have what is called “testamentary capacity” or have the mental competency to execute a will, it must be signed by a testator and at least two witnesses who are receiving nothing from the will. Some states may require you to make a self-proving affidavit, which helps the will get through probate. The affidavit has to be notarized, the will itself does not.

You can also create a “holographic” will, which is one that is in your (the maker) own handwriting. These can be problematic and are only allowed in certain states. The biggest challenge comes with proving the validity of the will in probate court.

What is probate court?

Probate court is the state’s way of ensuring the estate pays its debt/tax obligations and that the property goes to the correct people. It can be expensive and time consuming, especially if there is a lot of debt. There are things you can do ahead of time to either minimize your time in probate or avoid it altogether.

Things to ask your lawyer about:

Make sure they are up to date on all of the laws pertaining to property disposal, including what your spouse and children have a right too. A lawyer can help you navigate all of the state laws that affect what you can do with your property.

You will also want to make sure they explain to you how you can change and contest the will.

Ask about the duties and requirements for someone to be a personal representative or executor before naming one.

If there is anything you are wondering about, ask. If they don’t have the answer, ask if they know someone who does.

Trusts

will-trust-estate-planning-for-seniors

What is a living trust?

A trust is when you arrange for one or more people to manage/take care of property for someone else. If it is created during your lifetime, it is called a living trust. While you are alive you can transfer the title for your property to the name of the trustee of that living trust. This can help make sure property is distributed more efficiently after your death.

When you put property in a trust, you no longer own it. The trustee owns it. If you have an individual trust, you don’t need any permission to transfer property in and out. If it is a shared trust, you will probably need your co-trustees consent before transferring property. You can also put property that you still owe money on into a trust. In this case, the beneficiary becomes responsible for the debt when they receive the property.

Whenever you get married, divorced, have or adopt a child, move states, or your financial status changes significantly, one of the beneficiaries dies, or one of your trustees dies, you should amend your living trust.

Living Trust vs. Will

Even if you have a living trust, you still need a will. The will takes care of any property you have that is not included in the trust. It also allows you to name a guardian for any minor children you have.

Taxes

Any estate under $5 million in value is not subject to federal estate taxes. You will want to talk to your attorney about any state taxes that might affect smaller estates.

Loaning from the trust to a beneficiary

You can only make a loan from your trust to a beneficiary if the document explicitly says it is allowed. You can also allow the beneficiary to repay the loan with money they would otherwise have received from the trust.

Another thing you can do is allow the trustee to make payments on behalf of the beneficiary, such as for a child’s college tuition.

Ask your attorney about:

Your biggest concern is going to be the state laws regarding estate taxes, followed by making sure the language in the trust itself allows it to be used the way you want it to be used. It is possible for you to form a living trust on your own, preparing and filing the legal paperwork.

You may want to consider consulting with a license attorney if:

  • You have questions you can’t answer on your own
  • Your estate faces a significant tax burden
  • Or your spouse or children might challenge your trust.

Estate Planning

Estate planning covers both wills and living trusts. If you are going to hire outside help, here are a few things to consider:

  • What is their experience with trusts and estates? The more, the better
  • Will they allow you to review all of the estate planning documents? If not, why not?
  • What is the process for updating and maintaining your plan?
  • Is there anyone else (qualified and experienced) you can contact if you have a question and they are unavailable?
  • What is the process for trouble shooting? How do they contact you?

It may feel like a lot to deal with, but you do not have to do it alone. There are plenty of people who are qualified and willing to help. Do some research and write down all of your questions ahead of time so you are prepared and ready to get the help you need.

It is never too early to think about your future, and your children’s future.

Tags: trusts, wills
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
9 replies
  1. Daphne Gilpin
    Daphne Gilpin says:
    June 26, 2019 at 11:26 am

    Thanks for the tip to ask about their experience with wills and living trusts. My husband and I want to plan our estate soon. You made me feel more prepared to find the right lawyer to help us.

    Reply
  2. Larry Weaver
    Larry Weaver says:
    July 22, 2019 at 11:31 am

    I didn’t realize that estate planning can help with handling wills and living trusts. My parents are getting ready to retire, and establishing a will is something that they want to make a priority in doing. I think estate planning would help them as they get close to retirement, so I’ll suggest they find a lawyer with experience that can help them in this field.

    Reply
  3. Callum Palmer
    Callum Palmer says:
    August 6, 2019 at 12:04 am

    My dad has been thinking about doing up a will since he is a bit older. As you said here, it would be best to have an attorney help you make a will. That way, there wouldn’t be any mishaps after the will holder passes away.

    Reply
  4. David Johnson
    David Johnson says:
    September 25, 2019 at 8:57 pm

    It makes sense that estate planning and wills can be tricky. My uncle is about to retire and he’s trying to figure out what his options are to make sure his affairs are in order. We’ll have to look into probate attorney services.

    Reply
  5. Vivian Black
    Vivian Black says:
    October 18, 2019 at 5:56 pm

    I never knew that you still need a will even if you have a living trust. My husband and I are getting older and want to look into what insurances we need and any other documents. We will keep these tips in mind when looking for a professional.

    Reply
  6. Tammie Houston
    Tammie Houston says:
    October 23, 2019 at 5:56 am

    I didn’t know that estates under $5 million in value aren’t subjective in the federal estate taxes. Our mom is getting old and she wants to settle all the proper distribution of her properties equally to her children. She is asking for my help in looking for an estate and trust lawyer that can draft her will and be able to get back in touch with her to sign the documents or to update them if there are any changes.

    Reply
  7. Ginger Costner
    Ginger Costner says:
    November 22, 2019 at 6:56 am

    Thank you for sharing your thoughts!

    Reply
  8. Franklin White
    Franklin White says:
    August 17, 2020 at 4:54 pm

    Thanks for explaining how your will allows for your loved ones to receive the things you leave behind. I would like to make a will in case something were to happen to me or my wife. I want my children to inherit everything but I know it can be tricky process without a lawyer’s help.

    Reply
  9. rachel frampton
    rachel frampton says:
    October 4, 2020 at 9:18 pm

    My aunt’s health bis already deteriorating, which is why she’s currently looking for an estate planning attorney that may help her write a Will and trust. Well, thank you for elaborating here that she must ask about the duties and requirements that her chosen representative must obtain. I’m also glad that you were able to elaborate here the there’ll be state taxes.

    Reply

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Subscribe To Our Blog

Recent Posts

  • The Everyman’s Real Estate Dictionary
  • Real Estate Tips for Senior Citizens
  • Summer and Seniors, Ways to Stay Healthy and Happy
  • Digital Age Protection – Ransomware & Fishing Scams
  • Spring Cleaning Time to Declutter & Downsize

Categories

  • Downsizing
  • Elder Care
  • Estate Planning
  • Events
  • Internet
  • Real Estate
  • Retirement
  • Senior Health
  • Senior Move
  • Senior Safety

Recent Comments

  • rachel frampton on Wills, Trusts & Estate Planning
  • Franklin White on Wills, Trusts & Estate Planning
  • Shaylee Packer on How to Hire a Senior Move Manager
  • Ginger Costner on Wills, Trusts & Estate Planning
  • Tammie Houston on Wills, Trusts & Estate Planning

Archives

  • August 2019
  • July 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • December 2018
  • November 2018
  • May 2018
  • April 2018
  • February 2018
  • January 2018
What to do when your parents move in with youyour-parents-move-in-featuredhow-to-find-the-right-senior-move-managerHow to Hire a Senior Move Manager
Scroll to top