Intestacy
and Trusts
Questions
and Answers
What
is intestacy?
This is
a term that is used for someone who dies without leaving a will.
What
is a will?
A will is a signed legal agreement that states your wishes when
you die. It designates beneficiaries and a personal representative.
It may also state guardians for your children.
What
is a trust?
A trust
is a written agreement that states how you would divide your
assets and properties.
Is
a trust confidential and can it provide guardianship for my
children?
Yes it is
confidential and it may state whom you wish to have your children
reside with.
If
I have a trust, but am in debt will my debt be paid first?
No, a trust
prevents creditors from getting paid out of your assets. Your
beneficiaries will be paid as directed in your will.
What
is a trustor?
A trustor
is the person who creates a trust.
What
is a trustee?
A trustee
is the person or organization that manages the assets and holds
the title to the trust property.
What
is a beneficiary?
A beneficiary
is the person who receives the benefits of a trust.
Intestacy
Order- How things are divided
•
Wife and no kids= Wife
•
Wife and shared kids= Wife ($60,000) plus half of remaining
balance belonging to kids
•
Wife and kids= half each
•
No wife and kids= kids
•
No wife and no kids= decedent’s mom and dad
Things
to consider with intestacy:
•
The state may appoint a lawyer to oversee the distribution of
your assets and estate. The lawyer will be paid out of your
assets.
•
If there are no heirs the state can claim your property.
Order of
Payment of Expenses and Obligations:
•
Class 1- costs and expenses of attorney fees
•
Class 2- funeral and interment fees
•
Class 3- debts and taxes
•
Class 4- reasonable and necessary medical and hospital expenses
of last 60 days of illness.
•
Class 5- family allowance- $ 18,000
•
Class 6- child support
Exempt
Property
•
Homestead- wife throughout her lifetime and then kids.
•
$10,000 worth of household furnishings
•
Cars in decedent’s name
•
Florida prepaid college plans
Reasons
to make a legal will
1. It makes
it easier for loved ones
2. It will
state who takes care of your children
3. It will
prevent family disputes
4. It will
state who gets your assets
5. It will
prevent any confusion as to your wishes
6. It will
protect your assets, homes, and family business
Things
to consider when establishing a trust
1. Your
personal situation
2. Your
family’s financial situation
3. Personal
financial information
4. Goal
of the trust
5. Type
of trust best for you
6. How long
you will need the will for?
7. Who will
be your beneficiary?
8. Any specific
conditions that your beneficiary must meet prior to receiving
the assets.
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