WILL BASICS:
- A will is a simpler document that names an executor and beneficiaries.
- It must go through probate court and becomes public record, potentially delaying heirs' access to assets.
- Drafting a will through an estate attorney is recommended to minimize probate delays, typically costing around $500.
TRUST BASICS:
- Trusts manage assets both before and after death, bypassing probate and keeping transactions private.
- Types include revocable (living) and irrevocable trusts, with the former being alterable during the grantor's lifetime.
- Trusts can designate a successor trustee to manage assets if the grantor becomes incapacitated, ensuring continuity and privacy.
KEY REASONS FOR A WILL:
- Designating a guardian for minor children to avoid court-appointed guardianships.
- Disinheriting individuals or managing how minors receive assets.
- A will only takes effect after death, whereas a trust operates both during the grantor's life and after.
ADVANTAGES OF A TRUST:
- Avoids probate, keeping estate management private and efficient.
- Allows for immediate successor trustee management if the grantor is incapacitated.
- Provides specific management of assets for minors or those deemed incapable of responsible financial management.
CONCLUSION:
Both a will and a trust may be necessary for comprehensive estate planning, especially for those with minor children or a preference for privacy and control over asset distribution. Consulting with a state attorney, preferably with a Certified Kingdom Advisor designation for alignment with Christian values, is advised for drafting these essential documents.
ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:
- My husband wants to sell our house in Florida for a profit, invest some in stocks, and live on the rest with our Social Security in North Carolina, but I'm concerned about moving and leaving my elderly parents.
- I have savings in a credit union and am considering moving to a regular bank to see my money grow; I'm looking for advice on making this transition effectively.
- Is it advisable to leave my wife's 401(k) with her former employer, where it's invested in a target retirement fund, or should we move it to an IRA with a similar investment strategy?
RESOURCES MENTIONED:
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.
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