Bluffton South Carolina Estate Planning Law Blog

South Carolina parents who are creating an estate plan might want to consider using a trust instead of a will. A trust can offer a number of advantages and give a parent more control over how his or her assets are distributed.

A trust may be revocable or irrevocable depending on its purpose. Unlike a will, a trust is private, and assets from a trust may be distributed immediately instead of going through the probate process. However, one advantage of a trust is that assets do not necessarily have to be distributed right away, and, in some cases, it might be created to prevent this. Even adult children may be too immature to manage a large inheritance, so the trust might be set up so that they do not get a distribution until later. Alternately, they might receive small distributions at certain intervals. If the child has issues with creditors, the trust can keep assets protected from those creditors.

For fairly straightforward estates, a last will and testament may be sufficient for passing assets on to beneficiaries. However, some estate owners in South Carolina might want to consider a living trust, also known as a revocable trust. This estate planning vehicle has a number of advantages for people with larger estates or more complicated financial or family situations.

The estate owner retains control over the trust and the property that is placed in it. Property can be moved in and out of the trust without penalty. With a trust in place, the probate process can be largely avoided. Probate can be expensive and time-consuming, but one of the biggest advantages of avoiding probate with a trust is that it makes the estate plan private. Family members may use the details of an estate plan they are able to see as it passes through probate to challenge it.

When a South Carolina resident is creating an estate plan, there are many specifics to consider. For example, it's important to choose the right people for estate planning roles. One common problem is that multiple people may be appointed for responsibilities that overlap. This and other errors may cause conflict.

The many different roles that may exist in association with an estate plan include executor, trustee, agents for financial and medical decisions, agents for funeral decisions, financial account designees, long-term care insurance lapse designee and Social Security representative payee. These multiple and sometimes conflicting roles tend to arise when arrangements are made at different times throughout the estate owner's life. Therefore, one step in revising an estate plan may be to look at these roles and see which ones can be combined.

The first month of the year is a great time for South Carolina residents and others to get their lives in order. For example, it can be a great time to create a savings account or finally get serious about meeting fitness goals. It can also be a great time to get serious about creating an estate plan. Ideally, a plan will include a will that dictates where assets go after a person dies.

It can also determine who has guardianship of any minor children a person has. Without a will, state law may decide where assets go, and these beneficiaries may not be the ones an individual had in mind. Individuals can also benefit from buying an insurance policy that will provide surviving family members with income. The amount of coverage a person should buy will depend on his or her income and other financial needs.