WILLS & TRUSTS
WHAT YOU NEED TO KNOW
A Will and a Trust do different jobs. One tells the probate court what you want. The other can skip that court almost entirely. Here’s what each document actually does, when a Trust helps, and the one mistake that undoes both.
What is a Last Will?
A Last Will and Testament is probably the document most people picture when they think “Estate Plan,” but it’s often confused with a Living Will.
In this video, RG Skadberg breaks down what a Last Will actually does: it transfers your assets to your beneficiaries after you pass away.
Getting the terms mixed up can mean filling out the wrong document.
What is a Living Will?
Not every Estate Planning document deals with money. A Living Will, also called an advance directive, sets out the medical treatment decisions healthcare providers and caregivers should follow if someone becomes permanently unconscious or unable to make emergency decisions.
In this video, RG Skadberg from CCSK Law explains what a Living Will actually covers.
What’s the Difference: a Living Will vs. a Last Will?
People use “Living Will” and “Last Will” like they mean the same thing, but they don’t.
In this video, RG Skadberg explains the important role each plays in a person’s estate plan.
What is a Trust? Do I need one?
Why do some people have a trust and other don’t?
Trusts are a wonderful way to organize your thoughts and plans about your property and how you want it to benefit your children, charities, or others.
Not everyone needs a trust. However, it is a great way to accomplish your planning goals if you choose to use it.
WILL VS TRUST, PLAINLY
A Last Will is generally presented as the answer to everyone’s estate planning needs. It is not.
Its role in your Estate Plan is important but limited. Your Last Will is your primary means of communication with the Probate Court, after you pass. It does nothing during your lifetime. And, in fact, it may do nothing after you pass.
It nominates a person to be your Personal Representative – in a Last Will the Personal Representative’s title is Executor. It names the people you wish to leave things to. If you have minor children, it nominated the person(s) you wish to be named as Guardian.
The big things Last Wills do not do: They do not avoid Probate; and they do not have anything to do with assets that had beneficiaries (life insurance, IRAs, etc.), jointly held property.
They can be helpful, strategically. However, they are not the best, most efficient way to manage your entire estate.
A Trust works differently. You decide what assets you wish to be administered by your Trust, after you pass. It settles your affairs without the Probate Court involvement. Then, ultimately, distributes you property to those you name and in the way you define. The Trustee follows your instructions to accomplish your planning goals and does so efficiently, without Court-dictated timelines, legal notices, and public recording of your affairs. You can structure beneficiary distributions based on your wishes. It is a great way for you to create the legacy that you wish.
The Last Will/Trust question is not an either or. It is a what’s the best answer to accomplish my planning goals.
When you want to talk through your specific situation, we’re here. No charge for that first conversation.
THE 5 DOCUMENTS THAT PROTECT YOU
WHILE YOU’RE STILL HERE
A Will and a Trust handle what happens after you’re gone. They don’t do much for you while you’re still here. That job belongs to five other documents.
- Health Care Power of Attorney. Names who makes medical decisions if you can’t. In Indiana, your spouse doesn’t automatically outrank your adult children, parents, or siblings. This document settles that before it becomes a fight.
- HIPAA Release. Lets the people you choose actually get information from a hospital. Without it, staff can legally say nothing. Not even that you’re a patient there.
- Living Will. Puts your end-of-life wishes in writing, so your family isn’t left guessing during the worst week of their life.
- Financial Power of Attorney. Lets someone you trust pay your bills and manage your accounts if you become incapacitated. A safer route than putting a child’s name on your bank account, which opens your money up to their creditors and their divorces.
- Funeral Planning Memo. Answers the questions your family will have to answer anyway. Better that they come from you.
Skip these, and a sudden loss of capacity can send your family to court for Guardianship: a public, restrictive process that runs over $3,000 and takes months. These five documents keep that decision in your hands.
If you want to know which of these your family actually needs, we’re here to help. Call 219-230-3600.
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