How to plan your estate General estate planning facts. When you die, for the vast majority of people, your surviving spouse gets most of your assets even if you do not have a will. For example, if you own a house as husband and wife and one spouse dies, the surviving spouse automatically owns the house (even if the will says that the house should go to your Uncle Bob). The same is true for bank accounts with both spouse's names-- the survivor owns it, automatically. Furthermore, life insurance policies, 401(k) policies, and other similar investments have a named beneficiary/spouse which trump a will. Therefore, if one spouse dies, in the vast majority of cases, the surviving spouse inherits the property, no questions asked (our service assumes that your house, bank accounts, life insurance policies, etc., have your spouse as the beneficiary. If this is NOT the case, you should not use this service, but speak to an experienced estate planning attorney and be ready to pay additional money). Problems arise when both spouses die at the same time. Our service is designed to draft a will which #1. recommends a guardian who will raise your child(ren), and #2. sets up a trust to provide for your child(ren). Our service is intended to specify a guardian for your child(ren), and to give some direction on how the child(ren) should be provided for by your trust. Our service is intended for families whose net worth is under $600,000.00. Families who have a net worth of more than $600,000.00 should NOT use our service, since you may have significant tax consequences where advanced estate planning is required. Let's talk terms and definitions. "Guardian." A guardian is a person, named by the court, who will have legal and physical control over your children until they reach adulthood. I recommend that you consider naming a first and a second choice of a person or couple whom you would like to serve as guardian. Your recommendation is taken very seriously by the probate court, but there is not a 100% guarantee that they will always honor your wishes (for example, an ex-spouse may have better claim to raising your surviving child than the child's step parent). But it is important that your wishes be known to the court, so the judge does not make the decision without your input. "Trustee" and "Testamentary Trust." A testamentary trust is a trust which is created by your will, when you die. This has an advantage over Living trusts, which must be created now and cost a lot of money and also cost you creditor protection. In a testamentary trust, you get to name who manages the money you leave behind for your child(ren), how the money will be spent, and when your child(ren) receives the intended share of the trust (and for what purpose-- e.g. "at age 18 to help pay for college" or "at age 21 to help purchase a home" or "at age 25 when..."). A "trustee" is the person or institution (e.g. a certain bank) who controls the assets and makes sure that the money is paid to your child(ren), according to your written wishes. I draft most testamentary trusts accordingly: I recommend that the interest earned from the trust be given to the guardian of your child(ren) to pay for the living expenses, and that the assets of the trust be distributed to the child(ren) when they reach a certain age and to fund specific purposes (e.g. to pay for college, or to buy a house...). Note: if you have an ex spouse who may get custody of your child(ren), you should think about who will receive the interest from the trust assets. "Executor." An executor is a person you name who manages your estate. He will have authority to sell your property, set up the trust, pay your final taxes, and take care of other financial matters. You should recommend someone who has some good financial skills or who at least is responsible and organized. The executor's job is an important one but a temporary one-- once the trust is established and the probate court names the guardian of your child(ren), the executor's duties have been for the most part wrapped up. This page is NOT legal advice, but merely general information which should be used to prepare you for the interview/conversation with our estate planning attorney, Todd Wagenmaker. address: 8922 Parde Road, St. Louis, MO 63123 phone: 314.729.0132 | facsimile: 314.270.3122 email link: wagenmaker@aol.com Source code & object code Copyright 1998: Primecom Interactive, Inc. Subject to terms of license agreement.