Why You Need Both a Will and a Trust

At Cutler | Riley, we are often asked if both a will and trust is needed or if you only need one or the other. The short answer is everyone should have a Will and homeowners or parents with young children should have a Trust in addition to a Will.

A Will covers everything you own in your name, like vehicles or simple checking accounts. Often times these assets are not put into a Trust so that is why you need a Will in addition to a Trust.

Even if all of your property is owned by your revocable living trust, there are several reasons why you still need a Will. A Will "backs up" your living trust in case there is some property that somehow did not make it into the trust.

For example, a backup Will helps:

• dispose of suddenly acquired property (e.g. sudden gift, insurance proceeds, lottery winnings, a lawsuit settlement, etc.)

• dispose of property that is generally not desirable to transfer to a living trust, such as your personal checking account or car;

• name a personal guardian who will look after your young children; or

• name a property manager who will look after your children's property.

If you have are planning on preparing a living trust, make sure that you have a backup Will for all of the above scenarios and more. Doing so will ensure that all of your property is disposed according to your wishes.

If you have any questions regarding your Will or trust, schedule a free consultation with Cutler | Riley Law.