Will vs Trust
So if you know me, you know, I'm always looking to learn something new. It doesn't have to always be about business. But I am always interested in learning something new. I come prepared with my laptop and ready to take notes to explain them to family and friends and how I retain information. (I have so many notes on information I've learned; it's mindblowing). So I signed up for a lunch and learn this week and let me tell you... I was blown AWAY!. The way I thought, and how I think most people think, is that a Will protects your family and your assets. NOOOOOO it does not. First, what she told us is this. A will is an attorney's retirement program to make money during probate (can charge from 5% to 20% of the estate value). Like Whattttt, so this is what happens when a loved one dies. It goes to probate court immediately. There is no way around this with only a will.
Scenario. Say your husband has a will, and this is both of your second marriages. He has children from his second marriage. He leaves you 75% of his retirement, and the kids split the other 25%, and it goes to probate. One of his children can tell the judge that they helped take care of your husband for the past 2 years and deserve more money. The judge can say (I think you do). NOW you're in probate court fighting for what is said in the will, and you know what's happening behind the scene. The lawyer is racking up his fees, and you may come out with 50% because one of your stepchildren decided they DESERVED MORE than your husband thought, and there is no way of fighting this. On top of this, you have to pay a lawyer now and may come out mentally, financially, and emotionally drained.
But Babe, let me tell you how to avoid this shit show. Get a Revocable TRUST. Let me tell you the benefits.
When you have a revocable trust, you do not go to probate court or need a lawyer. It is 99.9% bulletproof.
With a revocable TRUST, you have a will as a backup, and your home is protected. So if there is something that is forgotten isn't in the trust, the will makes it, so any assets found that aren't included get forwarded into the trust.
With a REVOCABLE TRUST, you and your spouse can word it so that anyone who attempts to protest the Trust can receive 0%, and beneficiaries cannot revoke this. Anybody who wants to fight about what they deserve receives NOTHING.
Ok, I know this was a lot, but please understand this is necessary and can save you money and heartache when it all boils down to it.
Here is what you need; please speak to an estate planner about a revocable trust if you are not close to nursing home age. If you are close to nursing home age, speak to them about an irrevocable trust (you and your husband must have this done 5 years before going into a nursing home or assisted living facility).
DO NOT PUT YOUR KIDS ON ANYTHING bank accounts, deeds, life insurance..it will protect them in the long run. What you do is create a durable financial power of attorney and medical power of attorney.
The cost in SC is around 1700 through a Family estate specialist, and please shop around. You wouldn't buy the first car you saw. You would shop around for the best fit. The same thing applies.
I hope this helps someone. Would you please share this information with family and friends so important whether you are 30 or 60?.
*Disclaimer I am not an attorney or estate planner; this is information I learned and wanted to share. Don't hesitate to get in touch with an estate planner (They do NOT need to be a lawyer because they work with lawyers to file the trust)