Securing Your Legacy with Wills and Trusts
Wills and trusts are powerful estate planning tools. Harnessing them correctly can be key in furthering your goals for the future. Our trusted Michigan legal team here at Daudi & Kroll, P.C., is here to help.
Based out of Okemos and Canton, our will and trust attorneys are dedicated, dependable, experienced and knowledgeable. They can assist you with all aspects of forming wills and trusts, and incorporating them into a comprehensive estate plan.
What Is The Difference Between A Living Will And Standard Will?
A living will is a legal document that outlines your preferences for medical care in the event you become unable to communicate due to illness or injury. It becomes effective while you are still alive but incapacitated. This document may include instructions on life support, resuscitation or other life-sustaining treatments.
In contrast, a standard will, often called a testament, takes effect only after your death. It outlines how you want your assets distributed and allows you to name guardians for your minor children. Unlike a living will, a standard will must go through probate, a court-supervised process of allocating the estate.
Essentially, a living will guides your health care decisions while you are alive but unable to speak, and a standard will helps in estate handling after your death.
Types Of Trusts
There are several types of trusts, each designed to meet different goals:
- Revocable trust (living trust): This flexible trust lets you manage your assets during your lifetime and make changes as needed. After your death, the assets are transferred to your beneficiaries without going through probate, offering privacy and efficiency.
- Irrevocable trust: Once created, this trust generally cannot be changed or revoked. It is often used to reduce estate taxes or protect assets from creditors since you relinquish control over the assets it holds.
- Charitable trust: This trust type allows you to support a cause or organization while potentially receiving tax benefits. It can be structured to provide income to you or your heirs before the remainder goes to charity.
- Constructive trust: Not created by the individual; this is imposed by a court to address situations where someone may have unfairly benefited from another person’s assets. It is used to correct wrongdoing or prevent unjust enrichment.
- Special needs trust: Designed to benefit individuals with disabilities without affecting their eligibility for government assistance. It provides supplemental support while maintaining access to public benefits.
Each type of trust serves a distinct purpose. Our wills and trust attorney can help you create the most suitable trust for your needs.
What Can You Do with a Will?
A last will and testament can serve as the cornerstone of your estate planning. You can use it to:
- Direct how your assets will be distributed when you die
- Select who will oversee your estate during probate
- Choose guardians for your children
Our team is here to answer your questions about this key estate planning document.
Creating a Will
Here in Michigan, anyone 18 and over who is of sound mind can make a will. To do so, you need to:
- Have the terms of the will spelled out in a document
- Sign the document
- Have at least two witnesses sign the document (note: in Michigan, handwritten wills are exempt from this requirement)
Our wills lawyers can draft a will that aligns with your wishes. They can then guide you through ensuring it is enforceable.
The Benefits of a Trust
There are certain aspects of estate planning that wills can’t help with. This is where trusts can prove useful. They can be used to address a variety of estate planning goals, such as:
- Probate avoidance
- Medicaid and long-term care planning
- Special needs planning
- Asset protection
- Estate tax planning
- Life insurance planning
We can help you determine if trusts are the right solution for you.
How to Form a Trust
A trust is a legal arrangement where you give one party (the trustee) control of a property to manage it for the benefit of other parties (the beneficiaries). To form a trust, you typically:
- Have a document setting out the terms of the trust
- Name the trustee and beneficiaries in this document
- Fund the trust with assets
Trusts can be either formed during your lifetime (living) or by your will upon your death (testamentary). They can also be revocable or irrevocable.
Arrange Your Consultation Today
Discover the difference a well-crafted estate planning document can make. Our knowledgeable will and trust lawyers are ready to help you prepare for the future.
Fill out our online form to connect with us. You can also call 517-306-4538 to reach us in Okemos or 734-249-6310 to reach us in Canton.