Wills & Trusts
Wills and trusts are designed to protect yourself, your family, and your estate. When you create a will, you are explaining which of your assets and properties go to certain heirs and beneficiaries. Trusts are devised to transfer assets to people while you are either living, or immediately after your death. Wills can always be rewritten or amended, and depending on the type of trusts that you establish, you may be able to change the trust’s original set of rules when/if necessary. Wills and trusts are part of an estate plan, and they are important items to have. If you have a trust that is valid, your family may be able to avoid the entire probate process. Certain trusts allow you to transfer your assets to loved ones tax-free, which can eventually minimize or eliminate your estate taxes. Please contact our probate lawyer at the Law Office of Claudel Trajan today, and see how we may be able to help you create a will and establish trusts.
In order to create a valid will, the testator, or the person who is creating the will, must put their will in writing, understand what it means and implies, sign it in the presence of two witnesses, and not be under undue influence or duress. A will remains in effect until a new one is created, or a codicil is written. Codicils are amendments to wills, and they require the document to be signed in front of two witnesses, such as when a will is created. The law states that one cannot give away co-owned property, or something that has a designated beneficiary, such as a life insurance policy. The purpose of a will is to document which of your assets and properties you wish certain loved ones to receive after you pass away. You may also create a living will, which states your medical wishes if you become incapacitated or severely ill, but it does not include asset and property division. If you do not have a will, the court will determine who gets what of your estate after your death according to their laws.
A will can only transfer your estate after your death, but living trusts have the ability to transfer assets to beneficiaries while you are still alive. Trusts hold property or assets for the person who created it, who is also known as a grantor. The grantor appoints someone to manage the trust, such as a bank, and this is known as the trustee. A beneficiary is the person who will receive the assets from the grantor, and in some cases, the grantor, trustee, and beneficiary is the same person. If you choose to create this type of trust situation, it is advised that you choose a successor trustee and beneficiary in the event that you become incapacitated and can no longer make financial decisions. Trusts are established for many reasons. You may set up a trust for family members or minor children that do not or cannot exercise sound financial control over assets, or establish one in order to possibly reduce or minimize estate taxes. There are many types of trusts, and it is best to discuss your trust options with an experienced Puerto Rico estate planning attorney.
Creating a will and establishing trusts ensure that your loved ones will receive assets and properties according to your wishes, as well as possibly avoiding the probate process. If you wish to amend a current will, create a new will, or establish a trust, we have the ability to do all of the above for clients.