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Category Archives: Wills & Trusts

New Year, New Trust

This is the time of year to make resolutions and set goals for the new year. Your list might include goals like getting in shape, organizing your house, and traveling more. Another popular New Year’s resolution is to get a will or trust in place. Our firm can help you cross that goal off your list and it will be easier than you think.

Why should you get your planning done in 2022?

  1. Ensure that your assets transfer to the person(s) of your choice
  2. Identify who is in charge of your estate and any money you leave to minor children
  3. If you have children, name who would take care of them if something happens to you
  4. Identify who will make financial or health decisions for you if you can’t
  5. Preserve your wealth by avoiding probate fees and estate taxes
  6. Perhaps most importantly, you will have peace of mind knowing you have a great plan in place

Getting your will or trust done does not have to be a daunting task!

Contact Barchet Law today and schedule an initial meeting. Our staff are friendly, straight-forward, and genuinely believe in getting great plans in place for our clients. You can be finished in just a few weeks! It really could be the easiest goal you cross off your list all year.

What happens if I don’t have a will?

There’s a fancy word for dying without a will in Missouri. It’s called “intestate.” So, what does it mean to die intestate (never got around to doing that will)? It means that the State of Missouri decides how your estate will be distributed. There is a very specific distribution scheme laid out in the Missouri statutes. This distribution is in line with some people’s wishes, but definitely not with everyone’s.

In addition to losing your right to determine who gets your estate, failing to do your will also means you have no say regarding the following:

  • Who will take care of your kids if they are under 18 (called a guardian)
  • Who will be in charge of your estate (called a Personal Representative or Executor)
  • Who will overlook any money your minor children inherit from you
  • How much of your estate each relative inherits
  • Whether your Personal Representative will be supervised by the Probate Court

If you care about any of the above, and our guess is that you do, you need a will! The process is much easier than you think. Most clients only need to meet with an attorney twice and are finished in a matter of weeks. Contact our office today to schedule your complimentary initial meeting.

Why should I have a trust? Part III

Today is our final post in a series of posts about trusts.  See our previous posts here, here and here.  Today we continue explaining the advantages trusts can offer.

  1. Trusts Can Provide for Minor Children, Grandchildren or Disabled Beneficiaries. Minors and incompetent individuals cannot hold property in their own name, without court supervision.  A trust can avoid probate for your beneficiaries and provide for management of your assets for these beneficiaries who are unable to manage assets themselves, which will save thousands of dollars in court costs and legal fees.  A trust can hold a beneficiary’s share in trust until a beneficiary can manage property on their own, which could be a period of years, when they reach a certain age, college graduation or for their lifetime. You can choose how long your assets are to remain in trust.
  2. Trusts Provide Greater Flexibility. The trustee under your trust will have as much flexibility in terms of the investment, management and administration of your assets as you desire to grant to the trustee.  There are no rigid and automatic court imposed restrictions placed on the trustee, like those placed on court-appointed executors, guardians and conservators. As the initial trustee, you are accountable to no one but yourself.  Successor trustees are accountable to the beneficiaries of the trust.  Only if it appears that the trustees are not properly carrying out their duties can they be required to account to a court.
  3. Avoid a multi-state probate. If you have real estate in more than one state, a trust avoids probate in each state.    If you have a vacation home, deeded time share, oil, gas or mineral interests, family farm interest or other real property in another state, those assets must be separately probated in that state, in addition to probate in your home state of Missouri (if you are a Missouri resident). Having more than one probate court and more than one set of attorneys involved often is extremely complicated and expensive. If all of these real estate and property interests were titled in the name of your revocable trust, both the Missouri probate and the out of state probate would be avoided.

Call us today at 573-441-9000 to learn how you can protect your assets and provide for your family with a trust.

Why should I have a trust? Part II

Today is our third post in a series of posts about trusts.  See our previous posts here and here.  Today we continue explaining the advantages trusts can offer.

  1. Trusts Avoid Probate in the Event of Death. All assets held in the revocable trust at your death will pass to your beneficiaries without probate. This avoids all court costs and expenses, publicity, delay and restrictions on the management of your assets that would result if your estate were to pass through probate.
  2. Trusts have Lower Administration Expenses. There are many requirements of the probate court that will not be necessary with your trust, such as the court filing fees, surety bond premiums, and the minimum executor and attorney’s fees.  There will be expenses of administering a trust; however, all fees will be related to the actual work done rather than a minimum percentage set by state law.
  3. A Trust Keeps Your Business Private and Avoids Publicity. A revocable trust need not be filed with any court, and the assets in a trust need not be reported to any court, probate office or become part of the public record.  A revocable trust provides you and your beneficiaries with privacy regarding your finances and the details of your property, assets and affairs.  This is especially important when most probate courts records are accessible online by the general public.

Call us today at 573-441-9000 to learn how you can protect your assets and provide for your family with a trust.

Don’t forget to read Part III of this post.

Why should I have a trust? Part I

Today is our second post in a series of posts about trusts.  Last week, we answered the question, “What is a trust?”  Over the next several weeks we will explain the advantages trusts can offer.

  1. Uncomplicated Asset Management during Life. A revocable trust can avoid probate and manage your assets in the event you become disabled or incapacitated and unable to handle your affairs.  In the event of disability or incapacity, the successor trustee that you designated in the trust, takes over management of the trust assets for your benefit.  This occurs without probate court involvement or changes to your trust.
  2. Avoids Probate upon Incapacity or Disability. A revocable trust is beneficial if you become “incompetent” or incapacitated.  Without a trust, the probate court may need to get involved and a guardian and conservator would be appointed by the court to manage your property and personal affairs.  Court-supervised conservatorship and guardianship is an expensive undertaking, a matter of public record, and very restrictive.  This can be completely avoided with an effective estate plan and if your assets are held and managed by the successor trustee of your revocable trust.
  3. Ease of Changing Your Estate Plan. A revocable living trust will act as the master key to your estate plan.  You can make any changes simply by changing the terms of your trust.  You will not need to contact any banks, life insurance companies or other financial institutions where you have accounts.  One change to your trust changes all accounts, property and assets in the trust.  This makes it easy and efficient to keep your estate plan current and up to date.

Call us today at 573-441-9000 to learn how you can protect your assets and provide for your family with a trust.

Don’t forget to read Part II and Part III of this post.

What is a trust?

Today is our first post in a series of posts about trusts.  Over the next several weeks we will explain what a trust is and the advantages trusts can offer.

An estate planning trust, sometimes called a revocable living trust, is a key document for saving time and money during life, protecting assets, and avoiding probate.  A trust can also make a smooth transition of wealth to children and other beneficiaries in the event of death.

What is a trust?  A trust is a separate legal entity to manage property, according to the terms of the trust, for the benefit of the beneficiaries.  The person establishing the trust is the “Settlor” who usually serves as the first trustee or manager and is usually the initial beneficiary.

What is a revocable living trust?  A revocable living trust is simply a trust made during life that is changeable by the maker (Settlor).

How does a trust work?  We help individuals establish trusts as part of an effective estate plan.  The trust is a roadmap and sets the rules for the management of the maker’s property during life; then, sets out how the property is to be distributed to the beneficiaries after death.  After the trust is created, the maker transfers many of their assets to the trust.

Can the maker get this trust property back?  Absolutely.  In almost every situation, the maker keeps the right to withdraw any assets from the trust, the right to income from the trust and the right to add additional property to the trust.  However, the trust only works on property in the trust.  So, it is usually not advisable to take property out of the trust unless there is a specific reason to do so.

What are the tax consequences of making a trust?  There is no tax due for making and transferring property to a trust.  In most instances, during the maker’s life, there are no additional tax forms to file or tax returns to be prepared.  Because of the complete control the maker or Settlor retains over the trust, the trust is disregarded for both income and estate tax purposes.  There can be very significant estate tax savings through complex types of trusts for high net worth individuals and couples.

Call us today at 573-441-9000 to learn how you can protect your assets and provide for your family with a trust.

“I don’t have an estate.” Yes you do!

When people hear the words “estate planning,” many think it doesn’t apply to them because they don’t have a sprawling mansion or a Bill Gates sized bank account.  A recent article from Forbes explains why this simply isn’t true.

Your estate consists of everything you own, whatever that happens to be.  So, if you have a vehicle or a bank account, you have an estate.  Estate planning is just the process of formalizing what will happen with your assets after you’re gone.  You have the right to decide who gets your assets and who is in charge of your estate (called a personal representative or executor).  If you don’t formally make these decisions in your will or trust, the State will make the decisions for you.

If you want to exercise your right to decide what happens to everything you have worked so hard for, call our office today.  We will help you ensure that your assets are protected and that your wishes are followed.

Can you write your own will?

Did you know that the vast majority of handwritten wills are not valid in Missouri?  Missouri’s requirements for a valid will are very strict.  If you do not follow the formalities exactly, then your handwritten will is not a will at all.

Your will is important and you want to ensure that your wishes will be followed.  Our office can help you craft a will that reflects your goals and objectives and that will be recognized under Missouri law.

In life, some things have to be precise- your will is one of them.  Contact us today to learn how we can help.

Does A Will Avoid Probate?

No! Wills are your instructions to the probate court about what to do with your property. Property passing through a will goes through the probate process. The probate process is, essentially, a formal method to make sure that your bills are paid and that your beneficiaries receive the property that you are leaving to them.

So, what are the benefits of a will if it doesn’t avoid probate?

1 – A will allows you to control who receives your property after you die. Do you want to give all of your money to your spouse, your children, or only some of your children? Do you want to make sure that a disabled child, your parents or other dependent is taken care of? Is providing for your place of worship, school or charity important to you? A will can ensure that your wishes are followed. A will can also provide for contingent beneficiaries if a beneficiary unexpectedly predeceases you.

2 – Wills save your family money, as they can authorize many shortcuts that streamline the probate process. Wills can allow your executor to proceed without probate court hearings, waive the surety bond requirement, and allow the court to authorize independent administration. Without a will, your family may have to endure the long form of probate – supervised administration.

3 – A valid will is the only legal way to nominate a guardian for your minor child or children. If you have minor children, you know how important they are. Without a will, your opinion will not legally count. Neither the court nor your family members will have the benefit of your insight when determining who will care for your children and who will manage their money. You can also use your will to create a trust for your children’s education and support.

4 – Wills are the lowest cost planning option. They can be simple and yet very effective. Wills cost less than trusts or other sophisticated legal documents. A simple will, drafted by a licensed attorney, is the baseline protection that everyone with a child, home or bank account needs.

5 – Wills never expire during your lifetime, they are good for life. The will you create today has no expiration date. A valid and proper will can provide for the transfer of current assets as well as any property you may accumulate in the future. This is not to say that you should never review your will. Any time you have a major life change, you should make sure your will still reflects your wishes.

6 – Your will is a roadmap for the probate judge and your executor to follow. You direct how your property is handled and distributed. Without a will, your property will be distributed according to the intestate laws – these are the laws that provide the general default plan for people who die without a will. These default rules do not authorize any of the allowable shortcuts and may or may not fit your wishes regarding who receives your property.

7 – Your will shows your family that you care. A valid will makes everything easier, simpler and more streamlined. It eliminates hassle and gives your family the tool that they need in a crisis. The last thing a family wants to deal with during a time of mourning is a complicated and messy legal situation, especially one that could be avoided.

If you would like to learn more about what a will can do for you and how it is an integral part of an estate plan, contact us.

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