Frequently Asked Questions
1. What is the main difference between a will and a living trust?
A will is a document that only takes effect after you die. It goes through the court process of probate, where a judge validates it and oversees the distribution of your assets. A living trust, on the other hand, is active while you are alive. You transfer assets into it, and they are managed by a trustee. When you pass away, the assets in the trust can be distributed to your beneficiaries directly by your successor trustee, completely bypassing the costly and public probate process.
2. Do I have to divide my assets equally among my children?
No, you are not legally required to divide your estate equally. You have the right to distribute your assets however you see fit. However, if you choose an unequal distribution, it is extremely important to clearly state your reasoning in your will or in a separate letter. This helps prevent a disgruntled heir from legally challenging the will on the grounds that you were not of sound mind or were unduly influenced, and it can also help preserve family relationships.
3. How can I handle sentimental items like jewelry or family photos?
These items often cause the most emotional conflicts. The best method is to create a “personal property memorandum,” a legally recognized document in many states that you can reference in your will. You can list specific items and who should receive them. Another fair approach is to let your children take turns selecting items. The key is to have a clear, predetermined process in place so they are not left to fight over these cherished possessions.
4. What happens if I die without a will?
If you die without a will (this is known as dying “intestate”), your state’s laws will determine how your property is divided. Each state has a predetermined succession order, typically giving assets to your spouse and children first, followed by other relatives. This process can be slow, and the court will appoint an administrator to manage your estate. The result may be completely different from what you would have wanted, and it often leads to family disputes.
5. Is it a good idea to tell my children how much money they will inherit?
This is a personal decision. Some experts advise against sharing specific numbers, as it can create expectations or entitlement. Instead, they recommend focusing the conversation on the principles of your plan—that you have created a plan, that it is designed to be fair, and that you have appointed a responsible executor. This prepares them for the future without getting bogged down in dollar amounts that could change over time.
Disclaimer: This article is for informational purposes and is not a substitute for professional financial or tax advice. Consult with a certified financial planner or tax professional for guidance on your specific situation.
