What is a Will?
Your Will is a document which directs how your property is to be disposed of at your death. It designates a person responsible for assembling that property, for paying debts and taxes, and for distributing whatever property is left. A Will may provide for the appointment of a guardian for minor children, for a trustee to manage property, and/or for money to be used for someone elses benefits.
Why should I have a Will?
A Will allows you to specify how your property is to be disposed of at your death and permits you to appoint the person who will carry out your wishes. If you die without a Will, your property will be inherited in accordance with the laws which may not reflect your desires. If you have no spouse or close relatives and die without a Will, the State may take your property; someone whom you did not choose will have to be appointed to take care of your property, and that person may have to post a bond. This expense can be avoided with a Will.
What is a Trust?
A trust is a useful tool used in estate planning for accomplishing asset protection, affording privacy, and sometimes achieving tax savings. They are flexible in form, which make their use popular in accomplishing most estate planning goals.
In order to accelerate the process of transferring assets to intended beneficiaries, some people choose to arrange their property so that it can bypass the probate process upon their deaths, (especially relevant among owners of real estate in different states). In some cases a trust is created because the beneficiary is not mature enough to handle his or her money. These are called Testamentary Trusts.
Sometimes trusts created in a Last Will and Testament are used to reduce or avoid State and Federal Taxes. A Special Needs Trust is another common trust created within a Last Will and Testament. This is created for the benefit of a disabled or impaired person. It is usually designed to prevent the beneficiary from being disqualified from any government assistance or benefits that they may be receiving.
Robert C. Novy, Esq.
Novy & Associates, LLC
2915 Ridgeway Rd. – Rt. 571
Manchester, NJ 08759
732.657.0600
Fax: 732.657.7225
rnovy@novylaw.com