Wills and Trusts Archives The Quitmeier Law Firm of Kansas City

What’s the Difference between a Will and a Trust?

Trusts are only for rich people, right? Nothing could be further from the truth because trusts are often an excellent choice for many Americans with average wealth. So, what is the difference between a will and a trust and which one is right for you?

What is a Will?

A will is a legal document that indicates how you want your assets to be apportioned when you die. You can revoke or change your will at any time. You can also name a guardian for your minor children in your will.

There are some disadvantages to wills. First, wills are of no use in the event that you become incapacitated, because a will springs into existence only when you die. So if you have a will and become incapacitated, your relatives will have to go to court to have a guardian and/or conservator appointed. Second, if you die with a will in place, your will must go through a process known as probate. This is a court process that is entirely public, expensive and can be lengthy. Anyone can go down to the courthouse to take a look at how many assets you had at your death and how much debt you had.

What is a Trust?

A trust is a legal document that designates a person to manage your property. There are many different kinds of trusts, but one of the most popular is a revocable living trust. A revocable living trust can be revoked or changed by you at any time before you die (as long as you are mentally competent), and it holds title to your assets during your life. Upon your death or incapacity, the revocable living trust makes it easy to transfer title of your assets to person(s) named in your trust. Trusts can also be structured to lessen the impact of estate taxes.

One disadvantage of a trust is that you have a bit more work to do setting up the trust and moving your assets into it. However, once you do, the heavy lifting is done and when you die, your family will greatly benefit by easy transfer of title and avoiding the lengthy and expensive probate process. Further, with a trust, the process is entirely private.

Our knowledgeable wills and trusts attorneys can help you decide whether a will or a trust is right for you. Contact us today.

What Does an Executor Do?

You may have heard the word “executor” but have no idea what one is. Or, maybe you’ve been asked to be an executor. Either way, it sounds like an important job, but what exactly does an executor do?

An executor is the chief administrator of a will. If you are drafting a will, your attorney will ask you who you want to be the executor. You may pick a relative, such as your spouse. However, you can pick anyone you think would be trustworthy and would do a good job. It’s important to exercise due diligence when selecting the executor of your will because it is an important job.

Executors are charged with processing the terms of the will, and some typical duties of an executor are:

Probate the will. This means initiating the court process known as probate through which the decedent’s assets are transferred to the beneficiaries.
Collect the assets of the decedent. The executor needs to perform a comprehensive search for all of the decedent’s assets. If the executor is careless or negligent in this task, the executor can be liable to persons who are negatively affected.
Pay the decedent’s debts
Pay administrative expenses
Pay taxes that are due on the decedent’s estate

After the debts, administrative expenses and taxes are paid, the executor distributes all of the remaining assets according to the terms of the will. Executors have a fiduciary duty to the estate and can be held liable for mismanagement. As a result, executors often retain an attorney or a certified public accountant to provide assistance.

Executors are reimbursed for expenses they incur throughout the process, and they are sometimes also entitled to statutory fees.

The choice of an executor is important, and if you are selected to be an executor, it’s a big responsibility. If either of these situations applies to you, contact an experienced estate and probate attorney at The Quitmeier Law Firm who can provide proper assistance to get the job done.

Estate Planning for Your Child’s Life

When children are young, parents are busy — very, very busy. There are recitals to attend, soccer games and academic competitions, not to mention everyday care of the children. Not surprisingly, making long-term plans to ensure your children are protected if something should happen to you often takes a back seat.

While many consider estate planning essential only for the elderly, that is simply not true. It is very important to make such plans, perhaps even more so, if you have minor children. Here are the best ways to protect your children to ensure their safety and care:

Name a Guardian: If you and your spouse were to die simultaneously or become incapacitated, it’s important to leave instructions as to who you would want to raise your minor children. A guardian is a person who will raise a child to adulthood if parents can’t do it themselves. Parents often put off choosing a guardian because it is uncomfortable to think about or perhaps because the parents cannot agree on who the guardian should be. It’s important for parents to overcome these hurdles and make a selection, because if you don’t and something happens to you, a judge who knows nothing about you will choose the person who will raise your children. Your estate-planning lawyer can help you name a guardian in a will and can also help you revise your will should you later change your mind.
Provide for Your Children’s Financial Future: Because minor children aren’t allowed by law to manage money on their own, you should set up a trust or name an adult in your will to manage the children’s money until they are adults. Your estate-planning attorney can advise you about the best plan for your family to ensure that taxes are minimized and that your children’s financial future is protected.

If you are ready to protect your children through estate planning, our experienced and knowledgeable attorney at The Quitmeier Law Firm can help protect your children’s future. Contact Us.

Paperwork: Shred, Scan or Store?

We all have it. Piles and folders full of it. What is is ? Paper. Most of the time, we don’t know what we need to do with it. Do we keep it? For how long? Do we get rid of it? When? Luckily, there are some great resources online that can help us tame the paper once and for all. This one is courtesy of Women&Co., a service of Citi.

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