Wills & Trusts – The Basics
A will is that cannot be withdrawn after death which contains certain instructions that must be followed after the death of the person who made the will (the testator). This may include the distribution of assets (money and property) and may include the choice of a guardian to look after minors. If you want to know more about will and trusts then visit http://gklawgroup.com/.
The beneficiary receives the assets according to the instructions in the testator's will. The beneficiary may list certain gifts to certain beneficiaries, such as jewelry, other personal items, real estate, or a sum of money, and also provide instructions on what to do with other property for which the will does not have a specific gift.
A trust is a written legal document that partially replaces a will. The owner of the trust is known as the “trustee”. In a living trust, certain assets (such as houses, bank accounts, and shares) are held in the trust, managed for the benefit of the life trustee, and transferred to their heirs in the event of death.
Many people refer to themselves as trustees who are responsible for managing the assets of their trust. Therefore, even if the assets of the trustee are transferred to the trust, the trustee can retain control of his assets throughout his life. The trustee may also appoint a substitute trustee (person or institution) who will manage the assets of the trust if the trustee is unable or unwilling to do so.
A living, revocable trust can help ensure that a client's assets are managed the way he or she wants – even if the client is no longer able to manage them on their own.
Upon the death of the trustee, the trustee, like the executor, will confiscate the entire estate of the trustee, pay all debts, claims, and taxes and distribute the remainder of the property according to the testator's instructions. However, unlike a will, this can be done without court supervision or approval.