A Will is an instrument by which a person disposes of property after death. A Will only becomes effective upon death and a court order recognizing the validity of such Will. While the individual is alive and competent, the Will can be revoked or updated.
A Trust is an instrument that holds the legal title of property for the benefit of another person.
A Living Trust is created by a person to hold his or her assets until death. This is the most common type of trust. A revocable living trust can provide a method for management of a person's property in the event of later incapacity. A client may also select this type of trust to avoid probate. Since probate proceedings are a matter of public record, any asset that is held in the trust's name will avoid probate. Additionally, the names of beneficiaries, inheritance, and the terms of such inheritance remains private. A trust can hold title to a property located in another state; thereby avoiding an additional probate proceeding in that state. Clients who have an estate above the federal estate tax exclusion should consider a trust to minimize estate tax liability.
Examples of other types of trusts:
Financially secure clients may wish to transfer assets to loved ones tax free. Well planned gifting allows for wealth to be transferred to the next generation tax free.
Types of gifts that are allowed:
Many clients understand the importance of a Will, but few fail to recognize the importance of planning for a disability or later incapacity. Unfortunately, it is not uncommon for a person to experience a period of time where assistance is needed in making medical decisions or helping with financial management.
A plan for management of a client's financial affairs. A client designates another person to act as an agent in financial matters. For example: paying bills and managing accounts.
A client nominates another to make medical decisions in the event he or she is no longer able to do so. The named person will work with your physician to decide on the best course of treatment. This document should also contain a HIPAA release.
A medical power of attorney does not contain the necessary language for end of life treatment. The Directive to Physician allows the client to leave instructions regarding treatment in the event of a terminal or irreversible condition.
A client may designate a guardian of the person and/or estate should the need for a guardianship ever arise.
At Oliai Law Firm, we will listen to you and help you build a pathway to reach your goals and dreams.
Planning for the future
Protecting your wealth
Preserving your assets
4521 San Jacinto Street
Dallas, Texas 75204
Tel: 469-687-0076
Fax: 469-687-0075
