Dave says: What's Right for Me?

Dear Dave,

I was talking to some friends the other day about wills and trusts. They seemed to have different opinions, so can you guide me? I don't have a willortrust, and my financial situation is very simple. I just want to make sure I'm doing the right thing.

William

Dear William,

This is a big question. I'm sure your friends are smart people, but I'm glad you're looking for more answers. I'm not a lawyer, so I'll give you a few simple things to think about. Also, I would strongly suggest that you talk to an experienced and reliable lawyer, with the heart of a teacher, who will give you all the facts and put you on the record.yoursbest interests first.

Basically, a will is a legal document that explains what you want to happen to your things when you die and writes it all down. There are many different types of wills, but for most people a simple will is all you need to create a solid estate plan that protects your family if something happens to you.

Trusts tend to be aimed at people with multiple assets and unique or complex problems. And they come in many different forms such as, living trusts, revocable and irrevocable trusts and special needs trusts, just to name a few. In my mind, if you have less than $1 million in assets—and your financial world is simple and straightforward—a will does the job well.

One of the most important differences between wills and trusts is the ability to name a guardian for your minor children. Youit can bename a legal guardian in your will, but youI won'tin hope. So, even if you have a trust, you'll still need a will to make sure your children are taken care of after you die.

Another important difference between the two is that a trust allows you to bypass probate court—a will does not. Probate court cases can drag on indefinitely. In addition, they can be expensive. If your estate gets mixed up in probate court because someone is challenging the will, it could mean your family has to spend months in court while you mourn. No one wants to go through that. While we're on the subject of probate court, let's talk about another sticky topic.

There's a little crazy in every family. You probably know who your family is, but if you don't know them, it could be you. Seriously, though, we all know some families that seem to have more than their fair share of craziness and drama, and the will is much better for families that struggle with these issues and discord between family members. The probate court can resolve those issues. On the other hand, families that can deal with conflict in a healthy way, and trust each other, are better off with a trust, because they don't need the probate court to take care of them.

And if you are wondering if you can have the trust of bothagainwill, the answer is yes. In fact, many trustees have a will, too.