Wills

A will is the most common document used to specify how an estate should be handled after death. A person who is supposed to receive property based upon the direction of a will is called a beneficiary. Many individually-driven types of instructions may be included in a will. A will may dictate who should receive specific items of artwork, automobiles, real property or jewelry. A will may name a guardian who will take care of minor children should there be no surviving parent. A will even may be used to disinherit a child if the testator does not want the child to receive any part of the estate. There are, however, certain limits that do exist when putting a will together, as seen below.

Requirements for a Valid Will

In California, a person must be at least 18 years old in order to make a legal will. In addition, he or she must be of sound mind, which means that the individual has no mental disability that prevents him or her from understanding the full nature of the document he or she signs. If this is a question at the time the will is created, the court can step in and determine whether or not the person is “legally competent” to put together such a document. It is always best to check with an attorney regarding preparation of a will.

California law states that a person can make a will in three different ways:

1. Holographic Will: Holographic Will: A holographic will is basically a hand-written will, and it is considered valid in California provided that all of the material provisions of the will are handwritten by the person leaving the property. The will must also be dated and signed by the person formulating the will. A handwritten will does not have to be notarized or witnessed, but having it signed by witnesses will add a lot of weight to it in court, should it go that far.
2. Form Will: California law also provides for a "fill-in-the-blanks" will. The form will is designed for people with modest estates. It allows a person to leave the estate to his or her children or spouse, and also allows the person to give money to one other person or charity.
3. Third Party Will: A will can be prepared by a third party, usually an attorney. A lawyer who prepares wills also can give advice regarding the many ways to leave property and the tax consequences. This type of will must be signed by the testator in the presence of at least two people who are not beneficiaries under the will. These witnesses also must sign the will.

Trusts

A trust is a different way to leave property, and many prefer this mechanism to a will. To find out what best fits your situation, please contact Cheryl Mansell immediately.

Requirements of a Trust

In order to create a valid trust, the owner of property (grantor) transfers the property to a person or institution (trustee) who holds legal title to the property and manages it for the benefit of a third party (beneficiary). The grantor can name himself or herself or another person as the trustee. There are two types of trusts:

• Testamentary trust: A testamentary trust transfers the property to the trust only after the death of the grantor.
• Living trust: A living trust is created during the life of the grantor and can be set up to continue after the grantor's death or to terminate and be distributed upon the grantor's death.

Trusts are extremely complicated, and if not done properly, can carry serious taxation consequences. In order to make sure that your trust is set up properly, you need a Los Angeles probate attorney who has the experience to ensure that your beneficiaries ultimately receive the benefits you wish to confer. Therefore, you should not attempt to do this yourself. Contact Cheryl Mansell today to discuss the possibilities of setting up a trust and whether this is the proper option for you.