What is a Will?
A Will is a legal document through which you can direct what should happen to your property, possessions and money when you pass on.
What happens if a person dies without a will?
When a person dies without a Will, the deceased’s assets may not be distributed according to his wishes but according to the laws of the state. It means such a person died intestate. It also means you have left the future of your loved ones to fate. It also means your beneficiaries will go through the rigours of obtaining a letter of administration to be able to access your estate. And the courts determine who administers your estate and is the guardian of your minor children.
Can my Will be changed?
Yes. Your Will can be changed at any time during your lifetime provided you retain the capacity to do so.
How often should my will be revised or updated?
Your Will expresses your wishes at a particular point in time. It is advisable to review your Will as your circumstances change so that it accurately reflects your current wishes. Situations requiring that you update your Will include;
- Separation or divorce
- Starting a de-facto relationship
- Having children or grandchildren you need to provide for
- Your children or grandchildren have remarried or divorced or have extended families
- An executor named in your Will is unavailable or unable to handle the responsibility or has died.
- The death of a beneficiary in your Will
- When the value of a legacy diminishes over time
- When you buy or sell valuable assets so as to ensure you are giving out what you still own.
What is a Trust and why is it so important?
A Trust is an arrangement that enables a third party to hold assets on behalf of a beneficiary or beneficiaries. The person or institution that holds the assets is the Trustee while the person that sets up the Trust is called the Settlor. The primary consideration of a Settlor in a Trust relationship is to make provision for the welfare and upkeep of the Settlor’s intended and named beneficiaries.
Setting up a Trust helps to:
- Ensure asset protection throughout the life of the Settlor.
- Minimize taxes, such as inheritance and capital gains taxes, through strategic planning.
- Ensure assets are distributed according to Settlor’s wishes, protecting vulnerable beneficiaries (e.g., minors, individuals with disabilities)
- Maintain privacy regarding asset ownership and distribution, unlike wills, which are public records.
- Facilitate a smooth transition of assets after death, avoiding probate, reducing inheritance taxes, and ensuring wishes are respected. Ensuring Settlor’s values, goals, and legacy are preserved and passed on.
- Clarify asset distribution, reducing conflicts among family members.
- Enable planned giving to charitable causes, creating a lasting legacy.
- Facilitate smooth business transfer to future generations or chosen successors.
What is the difference between a Trust and a Will?
The major difference between a Trust and a Will is that a Will only takes effect after the demise of the Testator (the person who made the Will). Before the Testator’s death, the Will remains just a mere intention. Thus, no one has the authority to distribute the assets of a Testator while the maker of the Will is still alive. On the other hand, a Trust becomes operational during the lifetime of the Settlor and this is referred to as the Living Trust which is also a vital offering of the Company.
Another difference between a Trust and a Will is that whereas a single person, group of people or an organization can create a Trust, only a single person can write a Will. Once a Trust, is set up, there is deemed transfer of the titles of the Settlor to the Trustee which is the foundation of the fiduciary relationship between the Settlor and the Trustee.
How does an Education Trust Work?
An Education Trust is designed to set aside funds for the educational needs of beneficiaries, such as children or grandchildren, ensuring that they have the financial resources to complete their education.
What is a Living Trust?
A living trust is a legal arrangement that you create during your lifetime to hold and manage your assets. Unlike a will, which only takes effect after you die, a living trust can be used to manage your assets while you're still alive and after you pass away.
What is a Healthcare Trust?
A Healthcare Trust allows you to allocate funds for medical expenses or healthcare needs of the beneficiaries, ensuring their well-being in case of unforeseen health issues.
What is a Target Trust?
A target trust helps individuals save and accumulate funds toward a specific goal, such as purchasing a home, car, or funding a significant life event.
How secure are my assets in a Trust?
Trusts provide a high level of security. Assets held in trust are legally protected from claims by creditors and other third parties.