Wills and Trusts: What Are They and Why Are They Important?
In today’s society, people deal with different types of important legal documents all the time. Court papers, tickets and fines, passports, birth certificates, deeds, and work permits are all common legal documents that everyday people may encounter and many people have a good understanding of what these documents do. Some of the most important legal documents out there are wills and trusts, yet many people do not truly understand what these papers do or why they are significant. Both of these types of legal documents relate to estate planning and in order to make sure that your estate is established and protected, you should learn what these documents can do for you.
What Is A Will?
A will is a legal document that allows a person to outline who will receive which of their belongings after they have passed away. Wills also give people the ability to name legal guardians for any dependent children that they may have before they pass away. Additionally, wills allow people to name their executor which is the person or entity who take charge of the will owner’s estate upon their death. It is the executor’s duty to ensure that all requests in a will are carried out just as they were outlined in the will.
The stipulations and guidelines in a will only go into effect after the will holder has passed away. Unlike trusts, wills go through a legal process known as probate. In probate, a court must first validate that the will is authentic and legal. The court then assures that the properties and possessions outlined in the will are disbursed properly according to the guidelines set forth in the will. Because they go through legal examination by the court, all wills become public record which allows people to ensure that requests made in a will are properly met.
What Is a Trust?
A trust is a legal document that enables an authorized third party, known as the trustee, to maintain legal title of an estate for another individual who is known as the beneficiary. Trusts provide more flexibility and details than wills do and they can be set up in numerous different ways. Most trusts list two types of beneficiaries. The first beneficiaries receive access to the properties and income in the trust while they are alive and the next beneficiaries receive whatever is left over after the initial beneficiaries have passed away. The guidelines in a trust take effect as soon as the trust is established.
The main purpose of trusts is to facilitate the transfer of property from the owner to their chosen beneficiaries. However, trusts are often used instead of wills in order to avoid estate taxes and probate. Because trusts do not have to go through probate, the assets and properties in a trust get to the beneficiaries much quicker than they do with a will. Avoiding probate also allows the trustee to save money on court fees. If the trust is an irrevocable trust, it will likely not be considered part of the estate and will therefore, avoid government taxes. Trusts do not become public record like wills because they do not go through probate and therefore, those who are looking for more privacy tend to utilize trusts.
How to Gain Access to Wills and Trusts
Both wills and trusts are extremely important legal documents that deal with personal estates and their distributions. Beneficiaries named in trusts and wills are obviously important to the people who give them such titles and as a result, if you are a beneficiary, it is important to understand everything in the will or trust that names you. In order to gain access to the properties given to you in a will or trust, you will likely need copies of these documents because without them nobody will truly know what you are supposed to receive.
If you are a beneficiary on either type of document and you do not have access to these documents, then it is crucial that you gather copies immediately. Obtaining copies of these documents can be very difficult because of the nature of these documents and the privacy that is involved. The experts at Certified Field Agent have been dealing with wills and trust for decades and we can help you get access to copies of these important documents in no time. Contact us today to learn how a Certified Field Agent can help ease your worries and get you the documents you need.
