When it comes to property distribution upon death, many choose of having a will. While this helps ensure that the property is distributed how you want it to be, a will has several limitations. This document cannot perform some functions associated with property transfers after your death. Other than property limitations, you can’t also use a will to carry out certain instructions.
If you, for instance, have a joint property co-owned with other tenants, you can’t use a will to transfer the property. After your death, it is likely that your share will go to other surviving co-owners. A will, furthermore, is not ideal when transferring certain benefits such as IRAs, pension plans, as well as securities held in transfer-on-death accounts.
Taxes and Funeral
Colorado estate planning lawyers say it is important to note that said document can’t help you avoid tax debt or taxes. There are, however, certain kinds of trusts that will help reduce tax consequences. In most cases, a will is not usually enforced (or discovered) until a person’s death. This is why it not the best document to state any funeral instruction.
A will, furthermore, won’t also allow you to include instructions regarding conditional gifts or place conditions on items or properties if the chosen recipient divorces or changes religion. The same is also true for instructions that involve pets. You can’t leave commands or after-care orders for your pets after you pass away.
An Alternative Document
Those concerned by the limitations of wills usually see trusts as a better alternative. Setting up a trust can overcome the many issues involving your will. You can also seek help from an estate planning attorney to find out more about laws governing wills and trusts, and determine which document will put your best interest forward.
If you need assistance in drafting a will or creating a trust, consult a lawyer. The right attorney will help tackle all the issues of your chosen document to determine if it needs modification. This is beneficial to avoid dispute or family feud over inheritance.