One of the milestones of adulthood is coming to grips with the thought that we will not always be here.
One of the milestones of adulthood is coming to grips with the thought that we will not always be here. Usually, the next thought is “What will happen to my stuff?”, followed by (hopefully) “I guess I need to do some planning. 我需要遗嘱还是信托?“在税收方面，99分.9% of the population doesn’t have to think about the potential of creating an undesired beneficiary named the ‘IRS’. Taxes assessed to someone dying with property passing to their beneficiaries has been virtually eliminated. Indiana repealed its inheritance tax effective January 1, 2013, 和, in 2020, the federal exemption before any tax is due is in excess of $11 million, 和 double that for a married couple.
To answer the “will or trust”’ question, first you need to determine what would happen if you die without one. Dying without a will is termed ‘intestate’ 和 Indiana has written a lengthy statute detailing the lineal descendants 和 the percentages they would inherit, both for a single person as well as a married individual. If you are married with children, the statute provides that a surviving spouse would receive one-half of your estate, 和 your children would divide the rest equally among them. If you have no spouse or children, the law then goes on to dividing your assets to surviving parents of the decedent, 兄弟, 姐妹甚至堂兄妹, attempting to find a beneficiary (besides the State of Indiana).
The problem with this outcome is that it ignores the fact that your kids (or other heirs) might be under the age of 18. 在印第安纳州, a child possessing more than $10,000 in assets needs to have a formal, legal guardianship established over them through the court system to h和le their property, even if both parents are alive. This guardianship is a cumbersome, 昂贵的法律程序, 和 there are better ways to leave money to your child. 如果在这点上, 你在想, “I don’t want the State of Indiana to dispose of my property” or “My child is under the age of 18” then you likely need a Will, in which you decide who receives your property 和 if there are strings attached, such as assets are to be used only for a child’s education. 就你的孩子而言, you can delay their receipt of an inheritance until an age you choose, 如25, 30, 甚至40!
“我需要信托吗??” There are several types, but here we will discuss a revocable trust, also called a living trust. Indiana has very good estate administration laws 和 processes; however, sometimes a revocable trust will serve a person well. 例如, if you have non-Indiana real estate, 比如佛罗里达的一套公寓, by having your revocable trust own your condo instead of you, the trust survives your death 和 continues to own the property, 和 the trustee distributes it to the person you designate. It saves the time 和 cost of having an administration in Florida as well as Indiana. If you have a child you wish to disinherit, 有很多原因, it is harder in Indiana to break a Trust than it is to break a Will. Having all your property pass into your trust, then to your beneficiaries will present a higher mountain for the disinherited child to climb than a Will would. If you have a need for a high level of secrecy about the nature of your assets, 信托可能适合你. Upon your death, a Will becomes public record. Anyone can go to the courthouse 和 read your Will. A revocable trust is never probated or put on the public record, making the contents secret.
You do need a Last Will 和 Testament or a Trust if you don’t like how the State of Indiana will dispose of your stuff, 如果你有18岁以下的孩子, if there are people you do not want to inherit any of your property, or if you have non- Indiana real property. And time is not on your side: no one lives forever. It’s best to h和le this important matter as soon as you can.
This information is provided for informational purposes only. It does not constitute legal, tax or financial advice. Consult with your tax, legal or financial adviser before taking any action.
