by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

More and more people ask me to help them set up a trust these days. They feel that a trust is the better choice. They often ask me, “Now that I have a trust, why do I still need a will?

A will does 5 very important things.

* Cancels your old will.
* Names a personal representative (executor).
* Waives the bond on the personal representative.
* Acts as a back-up document to a living trust.
* Names a guardian for minor children and for special needs children.

There are several ways to cancel your old will. You can tear it up. You can burn it. You can write “revoked” across the pages or draw large X’s on each page. The most common way is to write a new will. The first paragraph of your will normally revokes all of your former wills.

When your will goes to probate a person is put in-charge of the paperwork. This person is called a personal representative. They may also be called an executor. Most people have someone in-mind for the job. Your will should name a personal representative and a back-up in case your first choice is not available.

A bond is an insurance policy that guard against mismanagement or dishonesty by your personal representative. It helps make sure that assets that end up going through probate will not be stolen or wasted. Since many people name their spouse or a trusted family friend as their personal representative it seems unecessary to require that person to be bonded.

Every living trust should be accompanied by a short will know as a “pour over will.” This legal document is set up to make sure that assets are put into the trust even when the Grantor failed to get the job finished during their lifetime.

The most important job that your will does is to name a guardian for your minor children or for children with special needs. If you do not name a guardian then the court may need to appoint one. Most people tell me that they want to make these choices rather than leaving them up to the Judge in probate or guardianship court.

by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

A trust is a relationship between three people, the grantor, the trustee, and the beneficiary.

The Grantor’s job is to set up the trust and put money and property into the trust. The Trustee’s job is to manage the money and property that is placed inside the trust. The Beneficiaries job is to sit back and get the benefits of the trust.

The Grantor sets up the trust and puts their assets into it. The Grantor then picks a trustee who will manage the assets for the benefit of the beneficiary.

My mother spent her birthday with my sister in Tucson, Arizona this year. I sent my sister a check to buy mom some flowers on her birthday.

In that situation I was the Grantor, my sister was the Trustee, and mom was the beneficiary. I picked my sister to go shopping because I knew she would do what I asked her to do.

Every trust, large or small, has a Grantor, a Trustee, and a Beneficiary.

With a Living Trust (a Living Trust is a trust you set up during your lifetime) you can be the Grantor, Trustee, and Beneficiary of your own trust. While you are able to manage your own money and property then you remain the Trustee. Your trust will have, written into it, special provisions, that provide for a time when you become ill or when you are no longer able to manage your money and assets.

Within your trust are the names of the people or professional trustees who will take over management for you. You name the people who will take care of your assets for you when you are unable to do it for yourself.