“Planning For Your Future (Part 2)” (June 2025 BOOM Magazine) focused on assets transferring automatically and transferring your assets through a revocable living trust.

Assets pass outside your will if you have beneficiaries or joint owners listed on assets such as financial accounts and insurance policies. Real property may pass outside your will if you jointly own the property with right of survivorship and you are the first to die. Assets may also pass outside your will if you have a living trust.

Everyone should have a will, but the extent it is utilized differs based on your estate planning. A will can control distribution of your assets after death and requires a court process to probate your will. A will avoids intestacy. Intestacy occurs when one dies without a will and no trusts or automatic transfers exist to direct all their assets. In those instances state law directs the distribution of the assets to surviving relatives in a specific order of inheritance.

WHAT MAY BE INCLUDED IN A WILL

  • Appoint an Executor(s) and a successor Executor(s), who will manage and distribute the deceased person’s assets according to instructions in their will;
  • Direct distribution of specific assets such as real property if you are the last to die on a survivorship deed or have ownership in property with no survivorship title;
  • Direct distribution of specific items such as money and personal items such as jewelry, furniture, keepsakes, etc.;
  • Name a guardian for minor children;
  • Name a trustee for minors or special needs; and/or
  • Disinherit individuals.

A few of the most utilized Wills are described below:

SIMPLE WILL

A simple will is probably the most common type of will. A simple will directs the distribution of assets in the manner you wish after your death. To make a valid will in Alabama, you (testator) must be at least 18 years of age and of sound mind. You must sign your simple will before two competent witnesses. To be a self-proving will, your signature as well as the signatures of the two witnesses must be notarized.

WILL WITH TESTAMENTARY TRUST

This type of will allows you to manage and distribute your wealth after death by creating a trust within your will but the trust will not go into effect until the will is probated. The testamentary trust allows you to manage when assets are distributed to your beneficiaries. A Testator may set age limits for a beneficiary to attain before receiving his or her distribution. Special Needs Trusts may also be included, and these will be discussed in “Planning For Your Future (Part 4).”

The difference in a revocable living trust “(Planning For Your Future (Part 2)” June 2025 Boom Magazine)) and a testamentary trust is that the revocable living trust is created during your life and the testamentary trust is created after your death. Testamentary trusts must go through probate.

WILL WITH TESTAMENTARY SPOUSAL SPECIAL NEEDS TRUST

This type of trust is established in a will for a spouse who may require Medicaid for long-term care. It is mandatory that all federal guidance for establishing these trusts is included. It is a way that a spouse may also set up a trust to help with other costs that Medicaid will not pay. Federal law requires the trust, if needed to be testamentary if Medicaid appears likely for long-term care.

POUR-OVER WILL

A pour-over will accompanies a revocable living trust. This type of will addresses any assets that are not already transferred directly at death through a living trust or to joint owners or beneficiaries on financial accounts or insurance policies. The probate process is necessary to pour-over assets into a living trust.

SIMPLIFIED PROBATE: THE ALABAMA SMALL ESTATES ACT

The Alabama Small Estates Act, also known as Summary Distribution, provides a simplified way to distribute assets other than real property. If the deceased person owns any real property after his/her death, this option is not available. This process does not require a full probate process and can be a quicker and less expensive route if you do not exceed the small estate threshold value. The value in 2025 must not exceed $36,075. This figure is adjusted annually to reflect changes in the Consumer Price Index.

Again, everyone should prepare a will, but the extent a will is utilized depends on choices made in your estate planning.

Senior Law Solutions, LLC offers a variety of opportunities to assist individuals and their families with aspects of Elder Law Care, Estate Planning, and Life Care Planning with individualized plans.  If you have questions or want to learn more, visit www.seniorls.com or call 334. 758.9400.

Alabama State Bar Requires the Following: “No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.” Responsible Attorney: Anne Elizabeth McGowin.