Sure, if you ask any random person if you need a will or trust, whether it’s a last will, a living trust, or even an estate planning– chances are they’ll tell you that it is optional to draw up a document to ensure the transmission of your assets or how it’s managed for you.
And they are right. These contracts are optional. However, in the absence of specific provisions, assets will devolve to the heirs designated by your country’s law without considering the various aspects of your life, such as who needs it more, who was close to you, what your preferences are, and so on.
The advantage of drawing up a will or trust is that you can modify this transfer by designating other heirs. However, this freedom is limited by the “available share” rule.
Depending on where you live, the choice of beneficiaries is free. However, it may be influenced by your country’s inheritance tax system since some beneficiaries are exempt (spouse, civil union partner, or a charitable organization). In contrast, others are heavily taxed (at 60% for a cohabitant, for example).
Here Are The Types Of Wills Or Trust That Are Usually Drawn:
1. Simple will: This will enable you to decide who will receive your assets and also name a guardian for minor children. A simple will is usually used for distributing property, assets, guardianship, and estate planning.
2. Testamentary trust will: This trust enables you to put your assets in a trust and put in conditions for inheritance. These conditions can be based on age or other factors. This will be ideal if you have inheritance recipients or underage beneficiaries.
3. Joint will: A joint will is a shared estate plan and it cannot be altered even after the death of one of the other willmakers. This is the will to use if you want the other will to receive their assets upon death. The only downside is, that a joint will cannot be altered by the surviving spouse.
4. Living trust: This trust is perfect you want a legally binding contract that allows you to manage your assets during your lifetime and decide how they will be distributed after death. It makes up a component of estate planning and prevents any contest of the living trust cost.
The purpose of a will or trust is not limited to passing on property. It can also be used to appoint a guardian for a minor child. It can also be used to make funeral arrangements. However, be careful in the latter case, as the will is often opened after the funeral.
So, if you’re still undecided whether a will or trust is useful or not in your situation, here are some advantages of having one:
Advantages Of Having Trust
1) Prevent future discussions
A will can sometimes cause tension among your loved ones. Your heirs may disagree with what you have decided. If a will you made turns up after your death, those closest to you may question its authenticity. For example, your heirs could claim you did not write the will yourself.
This risk does not exist with a will be drawn up by a notary or a registered entity, known as a notarial or authentic will. With such a will, your heirs can neither contest the content nor the fact that you made the will.
2) No contesting your condition when the will was made
Another possible subject for discussion is your condition when making your will. Anyone wishing to make a will must be “capable.” This means that you must be able to make up your mind about your decisions. You must also be able to express your wishes independently. If an aggrieved heir can prove that you were not of sound mind, the will can be annulled. Your wishes are assumed never to have existed.
You run no such risk if you make your will at a notary’s office. The notary will check that you are capable at the time of writing your will and that you are not acting under duress or pressure. As a result, your next of kin will not be able to contest your will easily once you’ve passed away.
3) Keep the will securely
Keeping your will in a bedroom drawer is not a good idea. The heir who first finds the will may destroy it if he feels aggrieved by its contents. This essential document can also be lost after a few years. This is why we strongly recommend filing your will with a notary. There is no risk of the will being lost.
Moreover, the notary registers your will in a central register of wills (CRT). In this way, the notary chosen by your heirs for your estate can check whether you have made a will. If so, they will also know which notary holds your will. So, you can be sure that your wishes will be respected.
4) Complicated legislation
If you draw up a will yourself, you run the risk that its content may not comply with the law. You can’t bequeath your entire estate to whomever you like, even if you enjoy a certain degree of freedom. Your children and spouse, for example, are always entitled to a specific portion of your estate, known as the reserve.
Inheritance tax can also play tricks on the people you want to bequeath part of your estate. If you leave certain things to distant relatives, friends, or neighbors, the taxes they will have to pay will undoubtedly be a poisoned chalice.
When you go to a notary for your will, the notary will discuss the matter with you. They will give you advice on finding solutions that correspond to your wishes. They will also explain the tax and financial consequences for the people you leave your inheritance to.
5) More clarity
In theory, your name, date, and signature are legally sufficient for a valid will. In practice, however, other details are often necessary. Whatever your wishes, if you name a beneficiary incorrectly or imprecisely, for example, part of your will may not be executed as you intended…
It is also better to provide for other heirs if the beneficiary you have chosen (an individual or an association) is dead at the time of your death or if the association no longer exists. If you make no provision, the legal devolution of the estate will apply by default. By drawing up your will with a notary, they will help you to formulate everything in a legally correct way.