After creating an estate plan – whether a will or a trust – clients often ask, “When should I update my estate plan?” The simple answer is–whenever necessary! Three things in life are certain: death, taxes and change.  In this post, I will focus on change. There are numerous occasions that would necessitate updating your estate plan, here are some of the most common situations:

Marriage or Divorce

Your spouse has certain rights to a share of your assets at your death. Failing to account for a spouse in your estate plan, or failing to update it when you separate from your spouse can lead to complications. A majority of people name their spouse as an executor, agent under a power of attorney, or successor trustee. If you are newly married, you may want to add your spouse as a representative or a beneficiary. If you are divorced, you may need to appoint new representatives and/or beneficiaries.

Death of a spouse or child

If you named your spouse as a representative or a beneficiary, you will need to update your estate plan when they die. Most people name their children as beneficiaries, thus, if a child predeceases you, who will receive their share of your estate? It could be a surviving spouse or a minor child. You will want to be clear about what happens to the deceased child’s share, and may need to make special arrangements regarding how that share is distributed.

Birth or adoption of child

Under the law, all of your children are eligible to inherit from your estate. I recently handled a probate matter for a family where the decedent failed to name an estranged son in his estate plan. Even though he had not seen his father in twenty-five years, the son challenged the will in the probate court. Will challenges are time consuming, emotionally draining and very, very expensive. Therefore, it is imperative that your estate plan acknowledges all of your living children–natural or adopted. If you choose not to leave anything to a particular child, you should state so specifically in your will or trust. Failure to do so could result in the omitted child challenging your estate.

Child or grandchild turns 18

When naming minors in an estate plan, their inheritance will not be distributed to them until they reach the age of majority, which is generally 18. However, often it is not wise to bestow a large inheritance on someone so young. Consider adding terms such as increased minimum age for distributions to ensure your beneficiaries are mature enough to handle their inheritance wisely.

Beneficiaries with special needs or supplemental needs

If a beneficiary becomes disabled and relies (or will rely) on SSI or Medicaid, you will need to add special needs planning to your estate plan. This will ensure the beneficiary will receive the benefit of their inheritance without losing government benefits.

You acquire new assets

When you acquire Real estate, open new banking or investment accounts, or other types of assets, be sure the new assets are being accounted for appropriately in your estate plan and/or properly transferred into your trust.  This not only makes sure that your new assets are accounted for, but it also allows the assets to avoid probate related issues.

You Start or close a business

If you are starting a business, you must think about business succession. That is, what will happen to your business when you are no longer here to run it. Great news, these provisions can be built into your estate plan!  If you are closing your business, you need to be sure that you update your will and/or trust

Update Fiduciary death or need to change

There are several reasons you might need to update your Representatives, such as: a representative passes away, declines to act as a representative, or perhaps you just change your mind about who you want to leave in charge.

Illness of spouse or to yourself

If you or your spouse become ill, you will want to revisit your estate documents, particularly  your financial and health care powers of attorney

You have Pets

If you have pets, particularly those that are expensive and difficult to care for (like a horse) or a pet with a long life expectancy (like a parrot), you should consider creating a pet trust. This trust will name someone to care for your pet when you are gone and will set aside funds for their care

You Change your mind about beneficiaries

You may just change your mind about who or how much you want a beneficiary to receive from your estate.

Move to a new state

Though wills and trusts are generally valid in all states, it is important to update these documents to reflect the law of the state in which you reside. Also, some states have statutory powers of attorney, some states powers of attorney and  living wills are not valid

Changes in the law

There are several types of taxes you should consider when creating an estate plan, including estate tax (death tax), capital gains tax, and gift tax. The rates and exemptions often change, so it is prudent to review your plan yearly to ensure your plan is still working for you.

Working with an experienced estate planning attorney in Rhode Island can help!

In summary, there are many life events that trigger the need to update your estate plan. An experienced estate planning attorney will advise you about when and how to make appropriate changes to your estate plan.  Click below to book an appointment with estate planning attorney Jill M. Santiago.

In today’s digital age, convenience is king. With just a few clicks, you can order groceries, book travel, and yes, even create an estate plan online. While the allure of do-it-yourself solutions may seem tempting, there’s one crucial aspect that online services lack – personalized expertise. In this blog post, we’ll delve into the benefits of working with an estate planning attorney versus using online services and why investing in professional guidance is the wisest choice for securing your legacy.

Spoiler alert, this is written by me, an estate planning attorney, so it could be biased! But it is all 100% genuine.

Beware of the Lure of Do-it-Yourself Legal Documents

Fast and inexpensive, these services are the fast food of estate planning. The benefit of these services are they will create a set of generic documents based on the prompts you enter.

But the pitfall to that is what if you aren’t sure what documents you need? Unlike a seasoned estate planning attorney, the DIY service cannot give you legal advice.

Other drawbacks to using an online service for your estate planning documents include:

• Uncover issues that seasoned estate planning attorneys know how to uncover
• Answer your questions after your estate plan documents are generated
• Tell you when you need to make updates or changes to your estate plan
• Keep you informed about changes in the law
• Most importantly – the online service doesn’t care about you or your family

An online document will be quick and easy, yes.  But on the other hand, an estate planning attorney takes the time to understand your unique circumstances, family dynamics, and financial goals. This personalized approach ensures that your estate plan is not just a one-size-fits-all solution, but a carefully crafted strategy that reflects your individual wishes.

Benefits Of Protecting Your Legacy with An Experienced Estate Planning Attorney

Much like a medical specialist, an estate planning attorney will listen to your needs and concerns, ask follow up questions that may uncover situations you would not otherwise be aware of, and develop a plan that is based on your personal needs. You can expect:

Comprehensive and Ongoing Understanding of the Legal Landscape:

Estate planning involves navigating a complex legal landscape with ever-changing regulations. An experienced attorney stays on top of these changes and understands the nuances of local laws. This knowledge allows them to provide advice that is not only current but also tailored to the legal intricacies of your jurisdiction.

Holistic Planning Beyond Documents:

An estate planning attorney offers comprehensive guidance that goes beyond paperwork. They can provide strategic advice on minimizing tax implications, planning for incapacity, and even addressing family dynamics. This holistic approach ensures that your estate plan is thorough and addresses all potential challenges.

Ongoing Support and Updates:

Your life and circumstances are bound to change over time. This estate planning attorney in Rhode Island offers ongoing support (known as Trust Administration), and is ready to assist with updates or changes to your plan as needed after your estate plan is signed and notarized.

Online services may not provide the same level of personalized attention or the assurance that your plan remains up-to-date.

Ongoing Professional Relationships and Resources:

Establishing an ongoing relationship with an estate planning attorney allows you to tap into their network of professionals. Attorneys often collaborate with financial planners, accountants, and other experts to ensure a well-rounded and cohesive approach to your estate plan.

Get Your Plan Set Up The Right Way The First Time

While online services may offer a quick and seemingly cost-effective solution, the benefits of working with an estate planning attorney are clear. Your legacy deserves the attention to detail, legal expertise, and personalized care that only a qualified attorney can provide. Invest in the peace of mind that comes with knowing your estate plan is not just a document but a meticulously crafted strategy designed to protect your wishes and the well-being of your loved ones. When it comes to securing your legacy, trust the professionals who understand the intricacies of the law and have your best interests at heart. Book Your call with Jill M. Santiago by clicking the link below.

“Do I have enough wealth to justify setting up a trust?” This is a common question. Many people (attorneys included) are under the impression there is some magical dollar amount of wealth one must attain before a Living Trust makes sense. Simple answer, is that no such magical amount exists.

Estate planning is about your goals and your legacy. Trusts are not one size fits all. True, many trusts are created to avoid estate taxes, give charitable donations, or provide for people with special needs, but there are several other factors to consider. In this blog post, I’ll lay out a few situations where you would benefit from a Living Trust within your estate plan.

Considering High Value Assets For Rhode Island or Massachusetts Residents

Determining the need for a Living Trust often hinges on the overall value of an individual’s assets. While there is no specific threshold that mandates the establishment of a Living Trust, individuals with substantial assets may find it to be a prudent and strategic component of their estate plan.

High-value assets, such as real estate, investments, and significant personal property, can trigger probate challenges, leading to delays, costs, and potential disputes among heirs. By placing these assets into a Living Trust, individuals retain control during their lifetime while ensuring a smoother transition for their beneficiaries upon their passing.

The Living Trust becomes a versatile tool–not only streamlining the probate process–but also providing flexibility for the trust creator to adapt the trust terms as their financial situation evolves. An experienced estate planning attorney will guide you through a comprehensive evaluation of your asset value, helping you make informed decisions about whether a Living Trust aligns with your wealth management and legacy goals.

Is Your Real Estate (or High Value Asset) in Another State or Country?

The location of assets plays a significant role in the effectiveness of a Living Trust as a key component of estate planning.

Living Trusts offer a distinct advantage when individuals own real estate or property in multiple states. Without proper planning, these assets might be subject to probate proceedings in each jurisdiction, resulting in increased complexity, time, and expense. By consolidating these assets within a Living Trust, individuals can streamline the administration process, as the trust is valid across state lines.

This not only expedites the distribution of assets but also minimizes the need for ancillary probate proceedings, ensuring a more efficient and cohesive management of an individual’s estate.

Benefits Of A Living Trust: Protecting Your Privacy

You may have concerns about privacy in financial your affairs. Unlike the probate process, which is a public process, the terms of a Living Trust  are private and confidential.

Your Living Trust is shared only with the persons you name as successor trustees and beneficiaries of your trust. Thus, a Living Trust allows individuals to maintain a significant degree of confidentiality in their financial affairs. Since the terms of a Living Trust are not part of the public record, the details of the trust, the assets it holds, and the beneficiaries involved remain shielded from public scrutiny. This added layer of privacy is particularly advantageous for those who wish to keep their financial matters discreet, shielding their heirs from unwanted attention and potential disputes.

By choosing a Living Trust, you can ensure that the transfer of assets to beneficiaries occurs swiftly and privately, reinforcing the confidential nature of your estate planning decisions.

Adding More Protection In The Event You Become Incapacitated

Planning for future incapacity or disability is a crucial aspect of comprehensive estate planning.

None of us can predict when unexpected events might compromise our ability to make decisions and manage our affairs. The Living Trust is not only about after-death distributions, but it also provides a mechanism for managing assets in the event of incapacity.

By placing assets in a Living Trust, your successor trustee will be able to manage those assets on your behalf if you become incapacitated. Individuals should also consider incorporating tools like a durable power of attorney, advance healthcare directive, and a living will into their estate plan. A durable power of attorney designates a trusted individual to handle financial matters on behalf of the incapacitated person, ensuring bills are paid, investments are managed, and other financial affairs are taken care of. An advance healthcare directive outlines preferences for medical treatment and designates someone to make healthcare decisions when the individual is unable to do so.

Additionally, a living will expresses specific wishes regarding life-sustaining medical interventions. By proactively addressing these scenarios, you not only gain peace of mind but also provide a roadmap for your loved ones during challenging times, minimizing stress and uncertainty in the face of unexpected incapacity or disability.

Protection & Control When You Have a Living Trust And a Dynamic Family

Family dynamics often play a pivotal role in the decision to establish a Living Trust as part of an estate plan. Families come in various shapes and sizes, and unique situations may require tailored solutions. A Living Trust offers flexibility in addressing specific family needs and preferences.

For example, in blended families, where there may be stepchildren or multiple marriages, a Living Trust allows for a more nuanced distribution of assets, helping to avoid potential conflicts among heirs. Additionally, family members with special needs can benefit from the customization and continuity provided by a Living Trust. The trust structure allows grantors to appoint responsible trustees who can manage assets on behalf of beneficiaries, ensuring financial stability and support in the long term. By considering family dynamics, estate planning attorneys can guide clients toward a Living Trust that not only preserves wealth but also fosters harmony and understanding among family members during times of transition and inheritance.

Business Owners And Living Trusts Go Hand In Hand

If you hold stakes in businesses, use the Living Trust to ensure a smooth transition of business assets to your heirs without disrupting business operations.

Living Trusts can be invaluable tools for individuals who also own businesses. When business ownership is part of one’s financial portfolio, incorporating a Living Trust into the estate plan can provide strategic benefits. A Living Trust allows for the seamless transfer of business assets to heirs upon the owner’s passing, facilitating a smooth transition in ownership without the delays and complexities associated with probate. This is especially critical for small businesses or family-owned enterprises where continuity is vital. Moreover, a Living Trust offers a degree of privacy, as the terms of the trust remain confidential, shielding business details from public scrutiny. By integrating business interests into a Living Trust, owners can ensure a more efficient and private transfer of assets, contributing to the long-term success and stability of the business even in the face of unforeseen events. Consulting with an attorney experienced in both estate planning and business law is essential to tailor a Living Trust to the unique needs of business owners.

Rhode Island Residents, Get Your Estate Plan Started With An Experienced Attorney

Determining whether your estate plan would benefit from a Living Trust involves careful examination of the factors. It includes far more than just the total value of your assets. An experienced estate planning attorney will help you navigate the legal intricacies and guide you toward decisions that align with your circumstances. Contact Attorney Jill M. Santiago to schedule a call or consultation by clicking the link below.

Trusts are essential tools for managing your assets and ensuring your wishes are carried out efficiently. However, not all trusts are the same, and whether you need a trust (if you are reading this you probably do) and what type of trust you need depends on your circumstances and your goals. So, without further ado, I will introduce to you the two main types of trusts— The Revocable Living Trust and Irrevocable Living Trust.

Let’s break down the basics of these trusts to help you understand the differences, how they work and when to use them.

The Revocable Living Trust: Flexibility and Control

A revocable living trust offers remarkable flexibility and any adult with assets can (and should) create one. The key feature of the Revocable Living Trust in Rhode Island is that it can be altered or terminated anytime while you are still alive. With an experienced estate planning attorney, a Revocable Living Trust can be created for married or unmarried persons, making it a versatile option for estate planning.

1. You Play All of the Roles

The beauty of a revocable trust is all the assets you place into it remain accessible for your use as long as you’re alive. When you create a Revocable Living Trust, your own assets are transferred into the trust, you are the initial trustee and a beneficiary of your trust. This means you have the power to:

• • Put assets in and take assets out of the trust to use for your benefit
  • Name and change your successor trustee(s)
  • Control how your ultimate beneficiaries receive their inheritance

2. Fully Customizable

A Revocable Living Trust can be fully customized to cover many different situations, including: planning for an incapacitated surviving spouse, child, or grandchild; and ensuring your legacy goes to the intended beneficiaries in cases of divorce and remarriage. An experienced Estate Planning Attorney will ask the probing questions to determine what customizations should be built into your Revocable Living Trust.

3. Flexibility

The flexibility of the Revocable Living Trust allows you to adapt to changing circumstances and financial needs, such as:

• • Avoiding Guardianship and Conservatorship: If set up correctly, a revocable trust can help you avoid the need for a guardianship or conservatorship during your lifetime, ensuring your financial matters are in capable hands.
  • Avoiding Probate: After your passing, a revocable trust will bypass the probate process, saving time and reducing complexities for your beneficiaries.

However, there are things the Revocable Living Trust cannot do, namely, it will not provide protection against creditors’ claims and does not help you with long term care (Medicaid) planning. If you have these types of concerns, you will want an Irrevocable Trust.

Irrevocable Living Trusts: Protecting Assets for Beneficiaries

The Irrevocable Living Trust does not offer the same flexibility and control as the revocable trust. As the name suggests, it cannot be altered or terminated once it’s created, except under limited circumstances usually involving a court action. The primary purpose of an Irrevocable Living Trust is to preserve assets for the benefit of your chosen beneficiaries by removing those assets from your control. Just like the Revocable Living Trust, you are the trust creator, you may be the initial trustee (though many irrevocable trusts require that you name a third party as a trustee), and you may be a beneficiary of your trust, but distributions to you will be very limited.

There are many reasons people chose to set up an Irrevocable Living Trust, including:

• Creditor Protection: When you place assets in a correctly drafted irrevocable trust, your creditors cannot access those assets. This is because distributions can only be made to certain beneficiaries at the discretion of the trustee.
• Medicaid Planning: If you’re concerned about protecting your assets for Medicaid eligibility, you must transfer your assets into an Irrevocable Living Trust at least five years before applying for Medicaid. After this five-year waiting period, those assets become unavailable for your use to pay for your care.

Just like the Revocable Living Trust, the irrevocable kind can help you avoid guardianships, conservatorships and probate.

The Revocable Living Trust offers flexibility and control during your lifetime, but doesn’t shield your assets from creditors or help you with Medicaid planning. The Irrevocable Living Trust provides protection for your assets, and it is an essential tool for Medicaid planning, but it comes with the trade-off of limited control once the trust is established.

Before you make an important decision, speak with an experienced estate planning attorney

Whether you should choose a revocable or an irrevocable trust depends on your specific goals and needs. An experienced estate planning attorney will help you get started on a trust-based estate plan that works for you. Contact Attorney Jill M. Santiago by clicking the link below.

Caring for a loved one with special needs involves unique challenges, including financial planning for their future well-being. Special Needs Trusts, sometimes referred to as Supplemental Needs Trusts,  are powerful tools designed to provide for individuals with special needs while preserving their eligibility for government assistance programs.

What is a Special Needs Trust?

A Special Needs Trust is a legal instrument created to manage and protect assets for the benefit of an individual with a disability. The primary goal of a  Special Needs Trust is to ensure that the person with special needs has access to funds to enhance their quality of life without jeopardizing their eligibility for essential government benefits such as Medicaid and Supplemental Security Income (SSI).

Types of Special Needs Trusts

• First-Party Special Needs Trust (Self-Settled Trust):

This trust is funded with the assets or inheritance of the person with special needs. It is often used when the individual unexpectedly comes into money, like receiving an inheritance or a settlement from a lawsuit, so that they do not lose Medicaid or SSI benefits. 

A first party special needs trust is subject to payback provisions, meaning that any funds remaining in the trust upon the beneficiary’s passing must be used to reimburse the government for Medicaid expenses incurred during their lifetime.

• Third-Party Special Needs Trust:

Family members or loved ones establish this trust for the benefit of the person with special needs. It is commonly used to provide for the individual’s supplementary needs, such as education, transportation, and recreation. Unlike first-party trusts, there are no payback provisions, so any remaining funds can be distributed to other heirs or charities after the beneficiary’s passing.

• Pooled Trusts:

Pooled trusts are managed by nonprofit organizations, where the assets of multiple beneficiaries are combined for investment purposes. Each beneficiary has their own subaccount within the pooled trust. They are an excellent option for individuals with smaller assets, or those who may not have a trusted family member to act as a trustee.

A pooled trust is also the only option for individuals age 65 or older who need to use their own assets to create a SNT to protect benefits.

Special Needs Trusts are invaluable tools for ensuring that individuals with disabilities receive the care and support they deserve while protecting their eligibility for government benefits. Understanding the various types of SNTs and the steps involved in creating them is essential for families navigating the complex world of special needs planning.

Seek professional guidance to make informed decisions and secure a brighter future for your loved ones with special needs. Contact Attorney Jill M. Santiago today by clicking the link below to schedule your appointment to discuss your estate planning needs.

Confused about Estate Planning and don’t know where to start? Here are a few Frequently Asked Questions that may help:

Do I need an estate plan?

Yes, if you have any assets and care about who receives them after your passing, as well as who will oversee their distribution, you need an estate plan.

What is probate?

Probate is the court process required to re-title the assets of a deceased person, such as a home or a car.

Why should I avoid probate?

Probate is a lengthy process (a minimum of 6 months in Rhode Island), expensive (involves court fees, attorney fees, and fiduciary fees), and it is public (documents filed with the probate court are accessible to anyone).

Should I have a will?

Yes, regardless of your circumstances, having a will is essential to ensure your assets are distributed according to your wishes.

What is the difference between a will and a trust?

A will simply names the people who will receive your property after you die, and names the person or people who will be in charge of distributing your property. Even if you have a will, your estate is still subject to the probate process.

A trust holds title to your property during your lifetime, and also dictates who will receive your property, and who will be in charge of that distribution, after you die. Because your property is already titled to the trust, there is no need for probate.

What is a Power of Attorney (POA)?

A Power of Attorney is a document that grants another person (Agent or Attorney in Fact) authority to manage your assets or make healthcare decisions on your behalf if you are unable to do so.

What is the spouse’s elective share?

Under state law, your surviving spouse is entitled to a share of your estate, even if you explicitly leave nothing to them in your will.

Can I do an estate plan if I am single and have no children?

Yes, if you are unmarried and childless, you can create a will or trust; otherwise, your estate will pass to your heirs at law, such as parents, siblings, or other relatives.

How much does estate planning cost?

The cost varies based on your situation. Consider the value of your estate and your peace of mind when determining your budget for an estate plan.

Lawyers may charge an hourly fee to draft your estate plan, or they may charge a flat fee. Other lawyers may charge a percentage based on the gross value of your estate (1% – 4%). The average cost of a will-based estate plan is $2,000. The average cost of a trust-based estate plan is $5,500. Plans that require Medicaid/ long term care or Asset Protection planning are considerably more expensive.

What is long-term care planning?

Long-term care, particularly in nursing homes, can be expensive (thin $10,000 per month or more). If you have substantial assets, you might need to plan ahead to preserve them for your spouse or children in the event of long-term care needs.

What is a Special Needs Trust?

A Special Needs Trust is created for a person with a disability to hold their assets and maintain government benefits like SSI and Medicaid. It can be established by a third party or the disabled person using their assets.

Does a Living Trust provide Medicaid protection for my home?

Only if the Living Trust is Irrevocable and contains specific provisions relating to Medicaid protections.

Do I need an attorney to do my estate plan?

Yes. There are many DIY options that will give you estate planning documents, but they will not give you any legal advice. Having an experienced estate planning attorney create your plan is the only way to ensure it meets your needs and expectations.

What should I expect if I hire JMS Law to handle my estate planning needs?

When you choose JMS Law:

• We will listen to your story and concerns.
• We will address your questions and concerns thoroughly.
• We will create an estate plan tailored to your current needs and flexible enough to meet future requirements.
• We will maintain an ongoing relationship with you to ensure your plan remains up-to-date and aligned with your wishes.

For any other inquiries or to schedule a consultation, please contact us. Your peace of mind is our priority.

When it comes to estate planning, two common tools often come to mind: wills and trusts. But how do you know which you need? Both provide for distribution of your property after your death. However, wills and trusts operate differently and come with distinct advantages and disadvantages. Here, we’ll compare and contrast wills and trusts to help you make informed decisions about which option suits your needs best.

Wills: The Basics.

A will, also known as a last will and testament, is a legal document that outlines how a person’s property and assets will be distributed upon their death. Here’s a breakdown of its characteristics:

• Distribution of Assets: A will allows you to specify how you want your assets to be distributed among your beneficiaries. You can name individuals, organizations, or even create specific bequests, such as leaving a family heirloom to a loved one.
• Guardianship: For parents with minor children, a will is where you can nominate a guardian to take care of your children in the event of your passing.
• Probate Process: Upon your death, your will must go through a legal process known as probate, during which a court validates the will and oversees its execution. This process can be time-consuming and costly, potentially delaying asset distribution.
• Public Record: Wills become a matter of public record upon entering probate, which means the contents of your will, including the assets you have and who receives them, can be accessed by anyone.

Trusts: The Basics   

A trust, on the other hand, is a legal entity that holds and manages assets for the benefit of certain individuals or entities. Trusts offer a more comprehensive approach to estate planning:

• Distribution of Assets: Trusts allow you to distribute assets both during your lifetime and after your death. This flexibility enables you to provide ongoing support for beneficiaries.
• Avoiding Probate: Assets held within a trust usually avoid the probate process, resulting in quicker and more private distribution. This can save time and money for your beneficiaries.
• Privacy: Trusts offer a higher level of privacy since their contents typically remain private, unlike wills which become part of public records.
• Control and Conditions: With trusts, you can set conditions on how and when assets are distributed. For example, you can specify that a certain amount is to be distributed annually for educational purposes.

          Types of Trusts:

There are various types of trusts, including revocable (can be changed during your lifetime) and irrevocable (cannot be easily changed) trusts, as well as special needs trusts, charitable trusts, and more. Each type serves specific purposes.

Choosing Between Wills and Trusts: Factors to Consider Deciding between a will and a trust depends on your individual circumstances and goals:

• Complexity of Assets: If you have a complex financial situation, multiple properties, or significant investments, a trust might be more suitable to manage these assets efficiently.
• Desire for Privacy: If you value privacy and wish to keep your estate matters confidential, a trust can help you achieve this goal.
• Potential for Incapacity: Trusts often have provisions for managing assets in case of incapacity, which can provide a seamless transition without court intervention.
• Flexibility: Wills are typically easier to create and modify, while trusts offer more intricate control over asset distribution.

Wills and trusts are both valuable tools in estate planning, each offering distinct advantages depending on your specific circumstances and goals. Wills are suitable for simpler situations and offer a basic framework for asset distribution, while trusts provide a more comprehensive and flexible approach, often avoiding the probate process and providing greater privacy.

Ultimately, the decision between wills and trusts should be made after careful consideration of your assets, family dynamics, and future plans. Consulting with an experienced Estate Planning Attorney will help you navigate the complexities of estate planning and ensure that your wishes are carried out effectively.

There are many different ways to prepare for your future with your estate planning attorney. There are many different types of documents, plans, and decisions that you have to make when deciding how you want to distribute your estate. When looking at the options and deciding what estate plan is best for your situation, you may find yourself wondering: what is the difference between a will and a trust? How do I decide which is best for me?

There isn’t just one type of will or one type of trust. It depends upon your personal situation, so it could look different for everyone. However, there are a few key differences that you want to make sure you take note of when you are making your decision.

Wills, And Avoiding Probate

One of the biggest differences between a will and a trust is that a will in Rhode Island does not avoid probate. A will can settle a dispute as to how an estate will be distributed, but it will still have to go through the lengthy and often expensive probate process.

A trust, on the other hand, avoids the probate process, which can be especially beneficial if you choose to title your home, vehicles, or other assets into a trust.

Although a will itself cannot avoid probate, a will can help you avoid probate if a title company makes a mistake. For example, if you intended to title your house into your trust but the title company does not follow through renaming the house, a will can protect your assets and intentions and prevent you from having to go through probate because of the mistake.

Trusts, And Nomination of a Guardian

Another huge difference is how a person can nominate a guardian for any minor children they have. A trust cannot nominate a guardian in any way. If you have children of minor age, it is important that you use a will to name their guardian in the case of unexpected events.

A trust can rename your assets with a designation to your children, but your trust cannot establish a guardian for your children.

Wills And Trusts Working in Tandem

A person will almost always need both a will and a trust. These two documents work hand in hand in distributing your estate, nominating a guardian, and establishing control of your assets. Anyone who owns a home in Rhode Island will need to have a trust to title their home in. Very rarely will a person only need a will: unless they own a very modest estate, or do not own a house, you will almost always need both a trust and a will.

Wrapping Up

Everyone’s estate plan will be different, depending on their personal needs and circumstances. Although decision making regarding your estate plan can be confusing and daunting, remember that your estate planning attorney is there to help you remember the differences between each document, and help you decide the best solution for your situation. Schedule a callback by clicking the link below to talk more with me about what plan might be best for you!