Frequently Asked Questions

A Will is a legal document that is filed with the probate court after death and becomes part of the public record. It names beneficiaries and an executor who is supervised by the court throughout the probate process.

A Trust can accomplish everything a Will can, but assets held in a trust avoid probate and probate taxes. Trust administration is handled privately by a trustee and is not supervised by the court.

One of the primary benefits of a trust is avoiding the probate process and probate taxes. Trusts also provide privacy, since trust administration is not part of the public record. In addition, trusts are important disability planning tools and can be structured to protect beneficiaries and manage assets over time.

No. A Will only takes effect at death. Important lifetime documents, such as financial powers of attorney and medical powers of attorney (advanced medical directives), are necessary to plan for incapacity and medical decision-making during your lifetime.

Assets held in a trust avoid probate and probate taxes. In addition, a trustee is not supervised by the court, which reduces administrative burden and stress. Trusts also offer greater flexibility in managing and protecting assets.

A trust is commonly recommended when a client owns real property or has significant assets, since probate taxes are based on the value of assets passing through a will. Trusts may also be recommended for caring for a disabled spouse or child, protecting assets from creditors, managing business interests, or holding property intended to remain in the family.

Proper funding is essential. If an asset is not titled in the name of the trust and does not have a beneficiary designation or joint owner, it may still require probate. Trust funding ensures the trust works as intended.

Yes. When a person dies, the original Will must be filed with the probate court in the county where the person resided. The court appoints the executor and supervises the administration of the estate.

It depends. In many cases, an amendment changing the governing law of the trust is recommended. Additional updates may also be necessary depending on the laws of the new state.

It depends on the type of trust. Assets in a revocable trust are generally not protected from the grantor’s creditors. Irrevocable trusts may offer creditor protection, but certain rules apply, including look-back periods for specific creditors.

It depends on whether the trust is revocable or irrevocable. Assets in a revocable trust may be subject to claims. Irrevocable trusts may offer protection, but nursing home claims are subject to a five-year look-back period.

Asset protection may involve the use of an irrevocable trust, which requires giving up certain control over assets. Specific rules apply, and assets generally cannot be transferred once debts already exist.

A beneficiary sub-trust can be created to hold a child’s inheritance. Since the beneficiary does not personally own the assets, creditors generally cannot access them. These trusts can be structured in various ways depending on family needs.

Marital trusts can include remarriage protections to prevent assets from being claimed by a subsequent spouse of the surviving spouse.

Virginia does not impose an inheritance or estate tax, but federal estate tax rules may apply depending on the size of the estate. Beneficiaries may also owe income tax on certain inherited assets, such as retirement accounts.

In many cases, registering vehicles in a trust allows the trustee to manage them immediately and helps avoid probate upon death.

Real property located outside Virginia generally requires probate in the state where the property is located. This process is known as ancillary or foreign estate administration.

After both spouses pass away, non-retirement assets are typically liquidated and distributed in cash to each child’s separate lifetime trust. Retirement assets are transferred into inherited accounts held by the beneficiary’s trust.

Yes. In most cases, each beneficiary serves as trustee of their own lifetime trust and may manage and access assets for their lifetime needs.

Yes. You may leave specific gifts, such as a fixed dollar amount, to a church, charity, or individual, with the remainder of your estate passing to primary beneficiaries.