PEOPLE HAVE A WILL BUT A
TRUST WITHIN A VALUABLE ESTATE
PLANNING TOOL.
WE WILL GET ADVICE ON THE
BENEFITS OF THE TRUST, HOW TO
SET ONE UP.
JUSTIN SMITH JOINS US NOW.
NICE TO SEE YOU.
WHY DON'T YOU FIRST BREAK DOWN
THE DIFFERENCE BETWEEN A WILL
AND A TRUST?
SURE.
THE DIFFERENCES BETWEEN A WILL
AND A TRUST, MAYBE WE SHOULD
START WITH THE SIMILARITIES.
THEY ARE BOTH CREATED TO HELP
YOU PASS ASSETS DURING YOUR
DEATH.
THAT'S THE MAIN THING.
A WILL IS TYPICALLY USED
HOWEVER TO NAME SUCH THINGS AS
GUARDIANS.
SAY IF YOU HAVE MINOR CHILDREN.
A TRUST IS TYPICALLY NOT USED
FOR THAT.
ALSO A WILL IS USED TYPICALLY
OF PROPERTY LIKE THINGS THAT
YOU MIGHT HAVE AROUND YOUR HOME
OR THINGS ALONG THOSE LINES.
A LOT OF PEOPLE QUESTION DO I
THEN NEED A TRUST?
WHAT DOES A TRUST DO?
A TRUST ACTUALLY AS WELL PASSES
ASSETS TO LOVED ONES BUT IT'S
LIVING THROUGH SOMETHING CALLED
A REVOKABLE TRUST.
REVOKABLE TRUST IS SOMETHING
YOU CREATE WHILE YOU ARE
LIVING.
THAT'S NICE IS IT PASSES ASSETS
TO YOUR CHILDREN OR HEIRS.
HOWEVER IT AVOIDS SOMETHING
THAT WE CALL PROBATE.
WHO NEEDS A TRUST?
ROCKEFELLERS, VERY FANCY.
SO THERE ARE TYPICALLY TWO
MAJOR TYPES OF TRUST THAT WE
TALK ABOUT.
ONE IS EAR IR REVOKE ABLE.
THOSE ARE SET UP FOR
ROCKEFELLERS.
THOSE TRYING TO REDUCE STATE
TAX.
AMERICANS ARE NOT USING.
THE OTHER TYPE IS SOMETHING WE
CALL A REVOKABLE TRUST.
IT IS CREATED WHILE YOU ARE
LIVING.
THE THING ABOUT IT IS IT HELPS
PEOPLE TRANSFER ASSETS.
FOR EXAMPLE IF THEY HAVE
MULTIPLE ASSETS AND THEY WANT
TO SIMPLIFY THINGS AND AVOID
IT'S ALSO A GREAT TOOL TO PASS
ASSETS SAY IF YOU HAVE
SOMETHING WE CALL ANCILLARY
PROPERTY OR ASSETS HELD OUTSIDE
OF THE STATE.
CABIN IN WISCONSIN OR A HOME IN
FLORIDA, TYPICALLY IF YOU WERE
TO PASS THE ASSETS BY YOUR
WILL, WHERE YOU SAY I WANT TO
LEAVE THIS ASSET TO SUCH AND
SUCH PERSON, THOSE PEOPLE WOULD
HAVE TO FOLLOW THE PROBATE
COURTS OR OTHERWISE WHAT WE
WHEREAS IF YOU WERE TO HAVE A
TRUST INVOLVED, YOU WOULD NOT
HAVE TO GO THROUGH THE PROBATE
COURTS IN THIS STATE OR IN
ANOTHER STATE.
IT REALLY HELPS SIMPLIFY THE
TRANSFER OF ASSETS THAT WAY.
DO YOU NEED A FINANCIAL
ADVISER?
DO YOU NEED A LAWYER?
IT SOUNDS MORE COMPLICATED.
THIS IS A VERY COMPLEX
SUBJECT.
I KIND OF CHUCKLED BECAUSE I
KNOW IT IS HARD FOR ME TO TALK
ABOUT THESE THINGS IN A COUPLE
MINUTES.
YOU SHOULD ABSOLUTELY TRY TO
MEET WITH AN ESTATE PLANNING
ATTORNEY IF YOU ARE AT ALL
INTERESTED IN THESE THINGS.
THERE ARE A LOT OF ONLINE
DAYS TO SET THEM UP THEMSELVES.
LET'S BE HONEST, THESE THINGS
CAN BE COMPLICATED.
THE PROBLEM IS YOU USUALLY
IN THEM UNTIL AFTER YOU HAVE
PASSED AWAY.
AT THAT POINT, IT'S TOO
DIFFICULT TO CHANGE IT.
ATTORNEY, AND TALK ABOUT WHAT
ARE YOUR GOALS OF WHAT YOU WANT
TO SEE HAPPEN TO YOUR ASSETS
WHEN YOU PASS AWAY, WHAT TYPES
OF ASSETS YOU HAVE AND WHERE
THEY'RE HOLD.
THEN YOUR ESTATE PLANNING
ATTORNEY WOULD BE ABLE TO TELL
YOU FOR THAT TYPE OF THING, A
TRUST MIGHT BE APPROPRIATE.