First, I have to say, I love the lawyer I found to do mine and my husband’s wills. I highly recommend finding a good lawyer yourself to do your estate planning. Paying for good legal counsel to write up your will, is worth the money. Ask around your neighborhood, I am sure someone has a good recommendation.
What impressed me about our lawyer was his advice, which I hope to also share with you. The key when making a will is to ensure you have covered all the basics of your current situation, and included sections that will cover changes in the future. This will save you money and time in the end, as you won’t have to go back and change your will every couple of years.
There is wording in a will to ensure if you have more children, they will be taken care of. There is also wording in a will that can ensure if your income goes up, your estate is still protected from taxes. This special section is called a bypass trust. We set one up and I highly recommend all couples do the same.
A bypass trust only goes into affect if a spouse dies. The surviving spouse can choose to activate the trust or not, depending on their current financial situation. By setting this up ahead of time, you save the potential tax liabilities of an inheritance and the hassle at an obviously stressful emotional time.
A bypass trust allows a portion or all of your assets to bypass you and go into a trust fund. If you make your spouse the executor of the trust, they still have full access to the money… but do not technically take possession. This helps to save money in taxes. This type of trust can actually only be incorporated into your will while both spouses are living. So, if you want to set it up… don’t wait!
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