Full question:
Which legal documents do we need? (will or trust?) Please be as specific as possible. We are unsure if we need a trust since we do not own a home. 1) We have children who are minors and need to make sure their guardians are chosen and stated. 2)We do not own a home and have no significant assets at this time. 3)We would like to state our medical wishes. 4)Matthew is the sole beneficiary for his aunt and uncle's estate and business. 5)Matthew hold interest in his father's business.
- Category: Wills and Estates
- Date:
- State: National
Answer:
I cannot provide legal advice, as the answer depends on your specific circumstances, including any tax considerations. I recommend consulting a local retirement planner or tax professional to review your situation.
Generally, a living will expresses your medical wishes regarding life support. This is usually a separate document from a testamentary will, but it can be combined with a healthcare power of attorney, which designates someone to make medical decisions for you if you're unable to do so.
A testamentary will outlines how your estate will be handled after your death. It can also name guardians for your minor children. A trust can also appoint guardians for minors and is effective immediately for property transfer, while a will takes effect only after death.
A trust is often used in estate planning to avoid probate, which is the court process for transferring property after death. Creating a living trust requires transferring your property into the trust while you are alive. In contrast, once you create a will and sign it properly, you typically don't need to take further steps for your wishes to be fulfilled after your death.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.