Define: Estates And Trusts

A will is a legal document that outlines how a person’s assets and property should be distributed after their death, while a trust is a legal arrangement where a person (the grantor) transfers their assets to a trustee to manage and distribute to beneficiaries according to the terms of the trust.

To contest a will, you typically need to prove that the will was not executed properly, the testator lacked the mental capacity to make a will, or there was undue influence or fraud involved in the creation of the will.

Probate is the legal process of administering a deceased person’s estate, including validating the will, paying debts and taxes, and distributing assets to beneficiaries. It is necessary to ensure that the deceased person’s wishes are carried out and to protect the rights of creditors and beneficiaries.

In most jurisdictions, you have the right to disinherit someone from your estate, but it is important to consult with an attorney to ensure that you follow the legal requirements and procedures to do so.

A living will, also known as an advance healthcare directive, is a legal document that outlines your wishes regarding medical treatment and end-of-life decisions if you become incapacitated. It is important to have a living will to ensure that your healthcare preferences are respected and followed.

There are various legal strategies to protect your assets from creditors, such as creating a trust, transferring assets to a family member, or utilizing exemptions and protections provided by state laws. It is advisable to consult with an attorney to determine the best approach based on your specific circumstances.

A power of attorney is a legal document that grants someone the authority to act on your behalf in financial or legal matters. It is important to have a power of attorney to ensure that your affairs can be managed if you become incapacitated or unable to make decisions.

There are several strategies to minimize estate taxes, such as gifting assets during your lifetime, establishing a trust, or utilizing tax exemptions and deductions. Consulting with an attorney or tax professional can help you navigate the complex tax laws and develop a plan to minimize estate taxes.

When someone dies without a will, their estate is distributed according to the laws of intestacy, which vary by jurisdiction. Typically, the estate is distributed to the closest living relatives, such as spouses, children, or parents, in a predetermined order.

Yes, you can change your will or trust after it has been created by executing a codicil (for a will) or an amendment (for a trust). It is important to update your estate planning documents periodically to reflect any changes in your circumstances or wishes.