Wills, Trusts & Estates

The legal area of wills, trusts and estates deal with a person's wealth. It encompasses how that person desires it to be passed on after death or, in the case of some trusts, how it is to be managed while he or she is still alive.

Elements

There are some key elements that are shared between wills, estates and trusts. All three of these documents must be administered by a party that is appointed by the individual or by a court of law. All three must also involve property and assets that is owned by the individual and have at least one designated beneficiary. There must also be evidence of intention - the party must intend to pass on his or her property and assets. There is also a fiduciary relationship involved in all three legal documents.

Wills are legal written documents that determines how a person's assets are managed and distributed upon his or her death. Wills must include a competent testator, meet the execution requirements and be intended to have the legal effect of being a will.

A trust is created to hold a party's assets for the benefit of the beneficiaries. Typically a trustee oversees the trust. Trusts are often created as an alternative method managing and distributing a person's wealth instead of a will. An estate refers to assets that are owned by a party when he or she dies, prior to distribution to heirs. An estate is administered by a trusted person.

Jurisdiction

The law of wills, estates and trusts is determined by individual states. States determine the laws regarding the rules and procedures for the administration of these legal documents. In saying this, there are basic concepts of administration that applies to all states equally. Individual states establish laws about determining both the limits and validity of wills and estates. State laws are important as many individuals do not execute wills.

In the case of trusts, state statutes as well as court decisions govern the laws. The issue of validity of a trust is determined by the state where the real property is located.