Paul Jamison of the Jamison Family of Companies speaks with Sandy Dickinson of Cross Country Mortgage and Brad Maxwell of Coster Law Firm about the state of the real estate market, why you need an estate plan, and the differences between a will and a trust.
Happy New Year, everyone!
Welcome to 2022. Here’s wishing all of you a year ahead of good health, much happiness, and many fruitful real estate transactions.
Paul and Sandy both feel the market is set to strongly continue on its current path. Though rates may creep up and transaction speed may slow down a bit, that doesn’t change the simple economics of supply being lower than demand here in the Charlotte area. They do not see this demand slowing significantly in the new year. So, go ahead and jump into the real estate market now. List your home for sale, buy a new home, and take advantage of property investment today!
Why You Need an Estate Plan
Brad Maxwell discusses estate planning with Paul. Brad says that people come into his office wondering if they need a will or a trust. He explains that not everyone needs a trust, but everyone usually needs something to be put in place for their end-of-life plan. What they may need can vary greatly based on each person’s individual circumstances – what assets you own and who you want to leave them to. Another consideration is that estate planning documents need to be tailored specifically on a state level.
People can generate documents themselves online, but there is a risk associated with using templates that do not take individual situations into consideration. A conversation with an attorney can expose important nuances that need to be incorporated into documentation. Having such estate planning documents in place when you pass will make the logistics of asset distribution much easier on your family and all remaining heirs involved.
Wills & Trusts
A will is a testamentary document, meaning it has no effect until the person passes away. While that person is alive, it’s just a document. When the person passes, the document takes effect, dictating how assets are to be distributed. Having a will does not cause one’s estate to avoid probate. Probate is a court process determining the validity of a will. Bank accounts and retirement accounts typically designate beneficiaries, so those assets usually can transfer easily without probate court. Advantages of a will are simplicity, ease of execution, and lower cost to prepare than trusts. A disadvantage of a will is that it’s not a probate-avoided tool, and it’s a public document.
A trust is a probate-avoided tool, that titles assets in the name of the trust, not the individual. The death of the individual is the triggering event, and after death, all assets can be clearly distributed without probate. Revocable living trusts are the most common type of trust, and the individual setting it up can amend it at any time. Irrevocable trusts are often set up to avoid creditors. Trusts are more intricate than wills to set up, and therefore more expensive. However, trusts are private and are more easily amended than a will.
Whether you decide to create a will or a trust, speak with a professional attorney like Brad to make sure you get your important estate planning done properly for you and your family.
We’re Here to Help!
We look forward to spending 2022 with you! To discuss property management, property investment, selling, buying, the local real estate market, and all things real estate related, contact the expert team of trusted advisors at Jamison Realty at (704) 846-3663.
We will be with you every step of the way. Also, listen to Your Real Estate Today radio show every Saturday afternoon on WBT for fun and interesting real estate information and special guests!