Last Will or Revocable Living Trust - Which One is Best for You?

Regardless of your income or the size of your family, estate planning is something you do not want to neglect. For the most part, estate planning means determining and documenting your wishes for your children, and for managing your assets and liabilities when you pass. Your assets and liabilities will change throughout life, so may the size of your family. So, your estate plan should be updated periodically. At Gibbons’s Law Firm, we are very familiar with the process and have helped countless people put their affairs in order. Over the years, our estate planning attorneys at Lake of the Ozarks, have noticed that people have some misconceptions about some common estate planning tools. So, this week we wanted to talk about living wills and revocable trusts. If you would like to know what they are, what the differences are between them, when you should use each one, or if you need both, we invite you to read this blog.

Last Will and Testament

It sometimes surprises people to learn that having a will in place does not keep your estate from going through probate.  It does, however, determine who should inherit your property if you pass away.  But the most important aspect of a will is to appoint a guardian for your children. If something happens to you while your children are under the age of 18 a will can ensure who will be appointed to take care of your children. Because it is generally more straightforward and simpler, getting a will put in place is less expensive and takes less time than a revocable living trust.  It also becomes public record upon your death.

Revocable Living Trust

A revocable living trust is similar to a will, except it allows much more detail and control. You can use a revocable trust not only to determine that your children get your assets, but you can choose at what age you want your children to receive those assets. Some parents prefer their children to be at least 25 before having the responsibility of managing large amounts of money or valuable property. Because it is more complex, a revocable living trust can be more expensive and take more time to prepare. But it does allow your estate to avoid probate, which can make up for the initial cost. Probate procedures can take months or even years. With a revocable living trust, your assets can be transferred directly to your heirs without going through the probate process. Another difference is that a revocable living trust does not become public record upon your death the way a will does.

Gibbons Law Firm Can Help

Knowing whether you need a will or revocable living trust, or both is something Gibbons Law Firm can help you with. Our mid-Missouri estate planning attorneys know how to keep your belongings out of probate and ensure your wishes are honored. We are here to make it easy for you to plan your estate and keep it up to date as your life changes. We encourage you to call our law firm in lake Ozark to schedule a free consultation. We would be happy to look at your situation and help create a plan to ensure that you decide what happens to your children and assets if something happens to you, not the courts.  If you found this blog helpful and would like to stay informed with all our latest announcements and information, use the links below to follow us on social media!

Remember, your initial consultation with Gibbons Law Firm is always free.

Your Trusted Legal Resource

Gibbons Law Firm

2820 Bagnell Dam Blvd, Suite B4

Lake Ozark, MO 65049

(573) 348-2211

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FAQs About Writing A Will

Did you know that 55% of American adults do NOT have a will or other estate plan in place? These statistics are even higher among minorities, with 68% of black adults and 74% of Hispanic adults not having a Will. While many assume that this is something for the Baby Boomers to worry about, Millennials need to get serious about wills and estate planning as well. You don’t have to have a lot of assets, or even own a home to make this a valuable step. If you are ready to create a Will at the Lake of the Ozarks, here are a few frequently asked questions to show you both the value of having one, as well as the ease in creating one.

What is a Will?

A will is a written legal document that states what you want to be done after you die. This can cover various topics, from what will happen to your belongings (your estate), to who will care for any minor children.

A will only become effective when it has been signed by both you and two witnesses, in the state of Missouri.

What Happens If I Die Without a Will?

If you die without a Will, (aka intestate), your property will be distributed according to state laws. It will not go to the government as long as you have a living relative who can claim your state. However, if you die intestate, it can make the process much harder and longer. Your estate will go to your relatives in this order:

(1) The surviving spouse receives:

  (a) The entire intestate estate if there is no surviving issue of the decedent;

  (b) The first twenty thousand dollars in value of the intestate estate, plus one-half of the balance of the intestate estate, if there are surviving issue, all of whom are also issue of the surviving spouse;

  (c) One-half of the intestate estate if there are surviving issue, one or more of whom are not issue of the surviving spouse;  

(2) The part not distributable to the surviving spouse, or the entire intestate property, if there is no surviving spouse, shall descend and be distributed as follows:

  (a) To the decedent's children, or their descendants, in equal parts;

  (b) If there are no children, or their descendants, then to the decedent's father, mother, brothers and sisters or their descendants in equal parts;

  (c) If there are no children, or their descendants, father, mother, brother or sister, or their descendants, then to the grandfathers, grandmothers, uncles and aunts or their descendants in equal parts;

  (d) If there are no children or their descendants, father, mother, brother, sister, or their descendants, grandfather, grandmother, uncles, aunts, nor their descendants, then to the great-grandfathers, great-grandmothers, or their descendants, in equal parts; and so on, in other cases without end, passing to the nearest lineal ancestors and their children, or their descendants, in equal parts; provided, however, that collateral relatives, that is, relatives who are neither ancestors nor descendants of the decedent, may not inherit unless they are related to the decedent at least as closely as the ninth degree, the degree of kinship being computed according to the rules of the civil law; that is, by counting upward from the decedent to the nearest common ancestor, and then downward to the relative, the degree of kinship being the sum of these two counts, so that brothers are related in the second degree;

(3) If there is no surviving spouse or kindred of the decedent entitled to inherit, the whole shall go to the kindred of the predeceased spouse who, at the time of the spouse's death, was married to the decedent, in like course as if such predeceased spouse had survived the decedent and then died entitled to the property, and if there is more than one such predeceased spouse, then to go in equal shares to the kindred of each predeceased spouse;

(4) If no person is entitled to inherit as provided in this section the property shall escheat as provided by law.

Who Can Witness My Will?

Your signature to the Will must be witnessed by two people over the age of 18. They must both be present when you sign your will, and the witnesses must also sign the Will in your presence.

Where Should I Keep My Will?

You should keep your Will safely at home or lodged with a solicitor or a bank.

When Should You Modify Your Current Will?

You should review your will once a year. There are other occasions to review your will and these include:

• If your marital status changes
• If the property you own changes significantly and you made specific gifts of that property
• If you adopt or have additional children
• If your child dies, leaving children
• If you move to a different state
• If any of your beneficiaries die
• If the person you name as personal guardian for your minor children or manager for their property is no longer able to serve
• If the person named as your personal representative (executor) is no longer able to serve
• If you change your mind about the provisions in your prior will
• If your witnesses move away, die or are no longer competent
• Your will is valid until revoked. You can revoke a will by making a new will. Your will can also be revoked if it is destroyed

What are Guardianships and Trusts for Minor Children?

A minor child MUST have an adult guardian unless a court has declared he is legally “emancipated.” Normally, the surviving spouse becomes the personal guardian of your minor child. However, parents should agree on who they want to be appointed as the personal guardian of their children in case both parents die simultaneously.

In the case of divorced or separated parents, the surviving parent will generally have the best claim to be the guardian of their child, although anyone may challenge a person’s petition to be the guardian of a child. If the surviving parent is unavailable, the courts will give great weight to the preference contained in the deceased parent’s will.

The Truth About Wills

The fact is, everyone dies eventually, but not everyone leaves a last will and testament. Many don’t even know how to go about making one. If you are confused about you will, you are not alone, but talking with an attorney at the Lake of the Ozarks who is experienced in this area is a perfect first step.

Remember, your initial consultation with Gibbons Law Firm is always free.

Your Trusted Legal Resource

Gibbons Law Firm

2820 Bagnell Dam Blvd, Suite B4

Lake Ozark, MO 65049

(573) 348-2211

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Life Changes... and So Should Your Will

Updating your will is an important task, although many individuals don't do so. It's not something that people think about often but should be done on a regular basis. There are many changes that take place in one's life and they typically call for updates to a will. A number of factors in your life can directly affect your will. It's important to keep this document up to date as often as possible. Our Lake of the Ozarks law office can help keep your will updated. If you've gone through life changes recently, it's time to make changes to your will. We can help you make any needed amendments to your will. Below you can find examples of life changes that may call for changes to be made to your existing will.

Beneficiary is Deceased

When a loved one passes away, your will may be the last thing on your mind. It's important to make a change in your will if someone who you have named as a beneficiary has passed away. You can always have these funds passed on to the individual's beneficiary.

Growth of Family

Whether you have a child or adopt, this new family member may need to be added to your will. If you intend for your assets to be split between your kids, you need to include the names of said children. This can help to protect your child or children, should something happen to you. You will also want to include WHO will gain custody of your kids, should you pass away.

Children turn into an Adult

Once your kids enter into adulthood, you may want to make changes to your will. Many times individuals will set a guardian until the child has reached the age of eighteen. After your child reaches this age, they will be able to take care of themselves and do not need a legal guardian. Your will can be changed to take off guardianship of your kids after they are adults. You may also have your assets set to disperse differently after they have reached adulthood.

Change in Marital Status

Your will should state specifically who you wish to receive your belongings. An update should be made if your marital status changes. Whether you get married or divorce, this life change can have a big impact on your will.

Change in Assets

If you experience a significant increase or decrease in income, you may want to update your will. An increase can actually leave your beneficiaries with a higher tax burden if you have not planned accordingly.

The only thing you can expect in life is the unexpected. That's why keeping your will updated is so important. Whether you want to change a beneficiary or have updates to make to financial totals, it's important to keep your will as up to date as possible. Your will can help carry out your wishes after you pass. Make sure your property and other assets go to exactly who you wish with an updated will. If you're looking to make changes to your will, contact Gibbson Law Firm today. We can help update your will and ensure your wishes are carried out. Remember, your initial consultation with our Lake of the Ozarks law firm is free!

Remember, your initial consultation with Gibbons Law Firm is always free.

Your Trusted Legal Resource

Gibbons Law Firm

2820 Bagnell Dam Blvd, Suite B4

Lake Ozark, MO 65049

(573) 348-2211

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