Common Questions People Have About Setting Up a Will or Trust
When planning for the future and considering how to protect your assets and your loved ones, establishing a will or trust is an important component of a comprehensive estate plan. Because the process can feel unfamiliar, many individuals have similar questions about how wills and trusts work. Below are clear and practical answers to some of the most common inquiries.
What Is the Difference Between a Will and a Trust?
A will is a legal document that outlines how your assets should be distributed after your passing. It can also designate a guardian for minor children. A trust is a legal arrangement in which a trustee manages assets for the benefit of designated beneficiaries. Trusts can take effect during your lifetime or after your passing and may provide advantages such as avoiding probate, which a will alone cannot achieve.
Do I Need a Will, a Trust, or Both?
The right approach depends on your goals, the complexity of your estate, and your preferences regarding privacy and administration. A will may be sufficient for straightforward estates. A trust may be more appropriate when you want more control over how and when assets are distributed or when you wish to streamline future administration. Many individuals choose to use both, since each document addresses different needs.
How Can I Ensure My Will or Trust Is Legally Valid?
A will or trust must meet certain legal requirements, which differ by state. Common requirements for a will include being written, signed, and properly witnessed. A trust generally needs a clear statement of intent, identification of beneficiaries, and appointment of a trustee. Working with a legal professional helps ensure your documents meet the applicable requirements and reflect your intentions accurately.
How Often Should I Update My Will or Trust?
Major life events such as marriage, divorce, welcoming a child, or significant financial changes are strong reasons to update your estate plan. Even without major changes, it is advisable to review your documents every three to five years to confirm that they still align with your current circumstances and wishes.
Can I Set Up a Will or Trust Without a Lawyer?
There are online tools available, but estate planning involves legal considerations that vary by state. Self-prepared documents can lead to unintended gaps or errors that create difficulties later. Consulting with an estate planning attorney helps ensure your documents are properly drafted, enforceable, and aligned with your goals.
How Do I Start the Process?
Begin by identifying your assets, considering how you want them distributed, and determining who should play key roles such as executor or trustee. After outlining your preferences, the next step is speaking with an estate planning attorney who can help you formalize your decisions and prepare legally sound documents.
Plan Your Future With Confidence
Creating a will or trust is an important step toward ensuring your wishes are honored and your loved ones are provided for. The Law Offices of Bruce Peotter supports clients in Colorado and California with estate planning, wills, trusts, and trust administration. To begin your estate planning process or request a consultation, contact us through our website or call our Colorado office at (833)-487-8787 or our California office at (714)-597-6515.
