• Facebook
  • Twitter
  • Instagram
  • Youtube
Call Us: (626) 355-4000
Cali Law
  • Home
  • Get Started Here
    • Estate Planning Basics
    • Single Parents
    • Married with Children
    • Life Partners with Children
    • Those Without Children
  • Who We Are
    • About Marc G. Garlett
    • How We Are Different
    • Meet Our Team
    • Our Office
    • Client Testimonials
  • Our Services
    • Estate Planning
    • Trust Administration
    • Probate Administration
    • Legacy Preservation
    • Community Outreach
  • Common Questions
  • Blog
  • Contact Us
  • Menu
inheritance 91024

Is a Will All You Need? Probably Not

Asset Protection, Estate Planning Blog, Wills, Wills vs. Trusts

inheritance 91024One of the most prevalent misconceptions when it comes to estate planning is that a Will is all most people need. But before you fall into this trap with your own estate plan, consider these five circumstances where a will simply doesn’t work:

Avoiding Court. To take effect, a will must go through the probate process at your death (or a conservatorship if you become incapacitated while still living), which can be lengthy and deny your heirs (or family while you are incapacitated) a quick resolution to the distribution of your estate (or the ability to pay your bills while you are incapacitated). There are also situations which complicate probate even further such as having minor children or owning property in another state.

Protecting privacy. Once a will is open to probate, it is a matter of public record and open to everyone — meaning that anyone can get access to it and learn the details on everything you owned and exactly where it is going. Wills can also contain personal information that is attractive to identity thieves.

Protecting you in case of incapacity. Since a will only goes into effect upon death, it provides zero protection for you if you should become incapacitated and no longer able to handle your own financial affairs or make decisions about your health care. If that were the case, your family would have to go through the stress and expense of petitioning the court to appoint a guardian or conservator to handle your affairs. This is costly and can even drain your entire estate. This can easily be avoided by having advance medical directives and a financial power of attorney drawn as part of your comprehensive estate plan.

Protecting your assets. Passing assets to heirs via a will does not provide any protection for those assets. Once they are distributed, they become vulnerable to a divorce actions, civil lawsuits, creditors, and even bad financial decisions by your beneficiaries. Placing your assets in a trust gives you control over how and when they are distributed, and protects them from creditors and judgments. This is one of the most powerful aspects of a living trust.

Passing real estate. When your home passes to your heirs through Probate (which it will do without a trust in place) it loses the step up in tax basis that a trust can provide. That means your heirs (who are most likely your family) will have to pay capital gains tax on the difference between the value of the home when you bought it versus the value of the home now. This can be another huge financial burden to bear on top of the already expensive cost of Probate.

See, trusts aren’t just for the wealthy because wills aren’t always the best way to protect and pass on even modest financial assets. Comprehensive estate planning should use living trusts and other legal tools to preserve your assets and make things as easy as possible on your family. Taking care of your family, after all, is really what it’s all about.

To you family’s health, wealth, and happiness,
Marc Garlett 91024

March 23, 2015/0 Comments/by CaliLaw
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Linkedin
  • Share by Mail
https://www.calilaw.com/wp-content/uploads/2014/01/inheritance.jpg 70 80 CaliLaw https://www.calilaw.com/wp-content/uploads/2020/02/Cali-Law-Logo-A5-1-300x99.png CaliLaw2015-03-23 21:45:552015-03-23 21:45:55Is a Will All You Need? Probably Not
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Blog Categories

  • Asset Protection
  • Beneficiaries
  • Blended Family
  • Business Succession Planning
  • Common Mistakes
  • Dementia
  • Digital Estate Planning
  • Divorce
  • Education
  • Elderly
  • End of Life
  • Estate Planning
  • Estate Planning Blog
  • Family
  • Family Values
  • Financial Caregivers
  • Gifting
  • Healthcare
  • Inheritance
  • Insurance
  • Kids Protection Planning
  • Legacy Planning
  • Long-term Care
  • Marc's Personal Blog
  • Medicare
  • Naming Legal Guardians
  • News
  • Parents
  • Personal
  • Pets
  • Power of Attorney
  • Probate
  • Real Estate
  • Retirement
  • Same Sex Couples
  • Special Needs Children
  • Spendthrift Trusts
  • Taxes
  • Trusts
  • Uncategorized
  • Wills
  • Wills vs. Trusts

Get In Touch

Phone

(626) 355-4000

Address

100 West Lemon Avenue, Suite 202
Monrovia, California 91016

Schedule a Complimentary Consultation

Simply Fill Out This Form

0 + 2 = ?

Women, You Rock! family estate plan 91024 Long-term care 91024 The Importance of Preparing for Your Potential Incapacity
Scroll to top