Creating your Estate Plan
Both Wills and trusts are effective instruments to provide for the
distribution of your estate upon your death, sometimes working in tandem.
Deciding between a Will and a Living Trust or whether both are needed depends on
your personal circumstances. Weighing the benefits and limitations of each will
help you decide the right instruments for you.
| Will | Living Trust | |
| Probate |
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| Asset Management | Will also does not provide for a lifetime conservator | Names a successor trustee to manage your affairs |
| Costs | Will cost to prepare a Will; probate can be costly | Will cost to prepare a Will; probate can be costly |
The greatest advantage of a Living Trust is its ability to assist you in the
active management of your affairs during your lifetime. However, a Living Trust
does not allow you to name guardians for your minor children. If you still have
minor children you should have a Will in addition to your Living Trust.
Specifically, your Will and/or Living Trust is the formal, legal instrument that accomplishes the following things:
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Transfers property to your heirs. Your “property” means everything you own: your house, real estate, bank accounts, stocks and bonds, furniture, jewelry, etc. And the way to transfer your property after your lifetime — for example, giving an heirloom to your favorite niece — is by spelling it out in your Will.
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Provides for guardianship of minor children. If you have children who are minors, your Will names the person who will take care of your children and manage their property.
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Names an executor. The executor is the person who will carry out your Will’s instructions and has the important job of settling your estate. This includes collecting and distributing your assets, paying your bills, resolving legal and tax issues, and protecting the interests of your beneficiaries.
You can name a person, bank or trust company as the executor of your Will. Naming a family member or close friend as executor can save money, but make sure that they feel comfortable managing legal and financial issues. It’s also a good idea to name an alternate executor -- a back-up person who can take over in case medical, business or personal matters prevent your primary executor from completing the task.
How to Prepare a Will
Following are some guidelines to start the process of preparing your Will:
First, list your property. Use this Personal Inventory to list all your assets. Remember that your property includes everything you own (or expect to own in the future). Include bank accounts, real estate, stocks, bonds, money market accounts, mutual funds, life insurance policies, pension plans, and personal property (cars, jewelry, clothing, furniture, artwork, etc.). Estimate the current value and original cost of each item. After listing your property, it’s also a good idea to list your liabilities, including all outstanding debts and responsibilities.
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Make a list of the people and charities you want to provide for when distributing your property. Include their addresses and relationship to you.
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Next, detail your wishes for distributing your property.
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Decide on an executor and an alternate executor.
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Name a guardian for minor children if necessary.
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Have an attorney write your Will.
You should keep only one signed copy of your Will or Living Trust, either at home or with your attorney. It may be helpful to have unsigned or photocopies (clearly marked "Copy") of your Will or Living Trust available for reference.
It's not easy to think about dying. But having a Will and/or Living Trust is the best way for you to care for the living after you are gone. The planning you do now will create a lasting legacy for the future.
Note: The information provided is not intended to be a substitute for
professional estate planning or legal advice. Since the laws regarding the
validity and enforcement of Wills vary from state to state, it is important to
seek legal counsel in preparing your Will.
For More Information
If you think we can be of any assistance with regard to your estate plan, or should you wish to provide for Greenpeace in your will or trust, please do not hesitate to call our Gift Planning Office at (800) 328-0678.