Do I need a Will if I have a Revocable Trust?
Authored By: Adam Rubin, Esq.
Many
individuals benefit from a Revocable Trust as part of their Estate Plans. A
Revocable Trust, that includes assets that have been transferred for the Trust,
sets the stage for a smoother process following a loved one’s passing. A Revocable
Trust enables a decedent’s wishes to be carried out in a private and usually
expedient manner, thereby eliminating an often extended probate process.
So
why have a will?
For
most folks, a will is still a necessary ingredient in a sound Estate Plan. Even
with vigilant attention, certain assets that a decedent may have wanted to be
in her trust may not be properly transferred to the trust during her lifetime.
Paperwork for a bank account that a decedent
wanted in her trust could have been left out of the files she brought in during
Estate Planning meetings. After executing the trust, newly acquired stocks,
bonds, or other assets may not be transferred into the trust due to the “hustle
and bustle” of life. It’s the rare person who would think, “Oh, I just invested
in this new mutual fund and now I must transfer it into my trust so that it does
not go into probate!”
Additionally,
if the decedent were tragically taken from this world in an accident, a
settlement or judgment from a wrongful death action would “payout” to the
Probate Estate. Naturally, there is no way this money could be placed into a
trust before the decedent’s unforeseen accident.
A
“pour over” will enable any assets that were not placed into a Revocable Trust
during life, for any of the reasons mentioned above or otherwise, “pour over”
into the trust after one’s passing. A Probate Estate will exist initially, but
the process should be fairly quick as the assets will simply transfer into the trust
after some of the early technical pieces of the probate process come to a
close. Typically, there is no way to completely avoid probate, but a “pour
over” will can make the process as painless as possible.
Contrary
to popular belief, nixing a will as part of an Estate Plan is not a dollars and
cents saver either. If all of the terms in a standard will were included in a
Revocable Trust, the cost of the “supped-up trust” would equal that of a
standard will and typical Revocable Trust combined. Not having a will may leave
a person penny wise, but pound foolish.
Contact an Attorney at The Shump Law Firm,
PC, to discuss how the combination of a “pour over” will and Revocable Trust
may be appropriate for your Estate Plan. Please call (410) 832.8865 to schedule
a consultation today.
Disclaimer
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
