If you are looking for a simple, one-line answer to the question above, YES, you do need a will and living trust to divide your assets to your heirs, closest living family members, blood relatives, or whoever you fancy! If you do not leave a will written, your assets might not distributed the way you'd like, and the court will decide which of your living members get access to your properties and liquid stock. Having a will and living trust is thus, extremely important so that you are fully in control of your assets after your death.
Why are Wills and Living Trusts Important?
Wills and living trusts are the only way you can make sure your assets
are passed on the ones you are related to, with the distributions you
deem correct. Particularly, if you have small children, wills are great
ways to establish guardianship of minors and ensure that your kids get
their share of your assets and monetary accumulations left behind.
As intestacy laws change from one state to another, you do not know who
gets how much access to your property if you do not leave a will behind.
The Difference Between a Will and a Trust
A will is a document that allows you to fix which parts of your assets
are divided amongst your heirs and family in the event of death. After
you die, all the assets you own would be divided as per the instructions
in the will, and thus, you are solidly in control of your funds. The
court ensures that the rightful distribution of your funds takes place
after your death and there are no disputes.
A living trust is more like a legal mechanism that makes sure you draft
terms and conditions for use of your assets and controls gifts and
charities you are likely to keep continuing after your death. Living
trusts are simply known to take care of your life insurance policies and
other benefits and will not take into account the complete accrued
financial holdings and amounts you have.
Thus, legally, you are recommended to have both wills and trusts put up
in the event of an untimely death thus, legally, you are recommended to
have both wills and trusts put up in the event of an untimely death.
There are provisions for you to change the will as many times you'd want
to. The last edition of the will you sign would be considered valid
during the time of your death.
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