The famed business investor Warren Buffet once remarked about the increasingly widening gap that has been emerging between American's rich and poor during the past few years. He once argued that this gap is only getting bigger because wealthy families are finding new ways to pass on their assets to their heirs using increasingly tax-saving approaches. Trusts are a key aspect of this.
Only 40% of Americans have taken time to sit down and draft a will. Researchers have found that warnings that all adults should have wills in place have often reached the other 60% of the adult population. The only problem is that many of the individuals that this message reaches are misinformed about what happens if they die without a will. Changing their perspectives isn't an easy feat.
Some individuals tend to think that blood is thicker than water when they're asked to choose between family or friends. When it comes to drafting a will though, some testators would rather leave their assets to the family members that they've chosen instead of the relatives that they were born to or raised around. If you're planning to disinherit your family members, then there are certain ways that you should go about doing it.
While many individuals take time to sit down and draft a will at some point during their lives, there is a significant number of people who do not. Many people believe that they're too young, too healthy or that they don't have enough assets to warrant drafting one. Death comes to everyone's doorstep at some point in their lives though. Everyone should have a will.
Most individuals aren't aware of the contents of a loved one's will until after their loved one passes.
A key decision that anyone setting up a trust must make is to decide who they're going to appoint to the role of trustee. There are a few attributes that you should look for any potential trustee candidate to have before appointing them to that role.
A will is an estate planning document that individuals draft to give their personal representative directions for how they'd like their assets to handled once they die. Each state has its own standards for what's considered to be a valid will. They also handle wills that have been executed in other states differently. They have distinct procedures for handling cases in which someone dies without a will too.