WHY DO I NEED A WILL OR TRUST?

If you have assets that you wish to pass on when you die and specific people you wish to make sure receive those assets you should have aWill or a Trust. A Will or Trust will designate your assets, your heirs, and when and how your heirs will receive your assets after your death.

Because the trust, and sometimes a will, identifies your assets, it will provide your children or other heirs with a list of items that need to be transferred. Without that list they may be unaware of everything you own. If they are not aware of the assets they cannot be collected and the asset may be lost.

Without a Will or Trust, you lose control over who will receive your assets. If you’re only heirs are your spouse and children or your parents, the intestate laws of the state of California may provide for automatic distribution to the heirs of your choice.

If you are not married but wish to provide for a companion or partner, a will or trust is absolutely necessary. Otherwise your partner or companion will receive nothing unless you have given it to them before you die. Similarly, if there is a person, who is not related to you, but who you wish to receive a share of your estate, you would either need to transfer that share before they you die or through a will or trust.

If you wish to disinherit one child, or limit that child’s access to his or her share of the estate, this can normally only be done through a will or trust.

WHAT IS THE DIFFERENCE BETWEEN A WILL AND A TRUST?

There are three main differences between awill and a trust. First, a trust is significantly more expensive to prepare than a will. Second, a Will must go throughprobatewhile a Trust can be managed and distributed without involving the Court. Third, costs and attorneys fees are usually much greater inProbatethan with a Trust. Last, probate will take a minimum of six months to complete distribution to your heirs. Distribution from a trust can take place in a much shorter period of time.

In some special circumstances, a parent may wish to limit when and how their children or heirs will receive their estate. Although both documents will allow you to limit when and how your children will receive their share of your estate, a trust provides a greater degree of flexibility and is much more cost-effective.

CAN I PUT MY HOUSE IN JOINT TENANCY WITH MY CHILDREN INSTEAD OF USING A TRUST?

Yes in most circumstances you can use a joint tenancy instead of a will or trust. This is not a course of action that we recommend. The problem with the joint tenancy is that you have divested your at self of your assets in your rights to your property before you have died. In other words, the joint tenancy gives the new joint tenant rights and control over your property which you may not wish to give them before you die. There are also some tax implications by use of the when using a joint tenancy. If the joint tenancy is used pass real property that has gone up in value since the property was purchased, allowing the property to pass through a will or joint tenancy will provide significant tax advantages to your heirs.