Wills, Estates, & Trusts

Wills

Wills are an important part of planning for your family’s future.  If you don’t have a Will then the Commonwealth of Virginia has a set of rules for how your estate will be handled.  I believe it is much better that you decide who gets what from your estate.  The only way to control how your assets are distributed is to have a Will.

Wills also allow you to select who will handle your estate (known as an ‘executor’ or ‘personal representative’).  And if you have minor children, you can also name who will be their guardian. 

Wills can range from simple to complex.  The Will tells the executor what to give to each person or organization.  This is known as a bequest.  The more people or organizations that you wish to include in your Will, the more complex it becomes.  That is why I have established a pricing list for simple, intermediate and complex Wills.  It is based on the number of bequests.

Pricing Chart

Simple Will (3 or less bequests)                                                        $350.00

Intermediate Will (less than 7 bequests)                                            $700.00

Complex Will (7 or more bequests)                                                   $1000.00

Estates

A decedent’s estate consists of all of the decedent’s assets, such as investments, real property, cash on hand and personal property. The decedent’s liabilities are also part of the estate, and need to be addressed by the personal representative.

In Virginia, probate is the legal process that happens after a person dies, regardless of whether the person died with or without a valid will. If a decedent dies with a will, then their property is distributed according to the will. If a person dies without a will, then Virginia's probate laws determine how their assets are distributed. Probate isn't always required after someone dies; it depends on what assets they owned.

The following definitions are from Section 64.2-100 of the Code of Virginia, 1950, as amended.

  • "Fiduciary" includes a guardian, committee, trustee, executor, conservator, or personal representative.

  • "Personal representative" includes the executor under a will or the administrator of the estate of a decedent, the administrator of such estate with the will annexed, the administrator of such estate unadministered by a former representative, whether there is a will or not, any person who is under the order of a circuit court to take into his possession the estate of a decedent for administration, and every other curator of a decedent's estate, for or against whom suits may be brought for causes of action that accrued to or against the decedent.

  • "Trustee" means a trustee under a probated will or an inter vivos trust instrument.

If the matter needs to go through a formal probate process, the court will appoint someone to handle the administration of estate, normally the personal representative. Many times the personal representative will be named in the will. If not, the court or clerk of the court will appoint someone.

The probate process can be tricky. That is why you may need the services of an attorney.

Trusts

A trust is a written agreement between a Grantor (the creator of the trust) and the trustee (who is responsible for the assets of the trust). There are many types of trusts, with the most common being a revocable living trust. A revocable living trust allows the Grantor to re-acquire any assets that the Grantor may have placed in the trust. At the other end is the irrevocable trust, which does not allow the Grantor to withdraw the assets from the trust.

The Trustee only has the powers that the Grantor has given to the Trustee in the trust agreement. The Trustee has a duty to act in the best interests of the beneficiaries of the trust, which can include the Grantor. This is also know as a fiduciary responsibility.

The trust can be basically unfunded (waiting for some event to occur that will fund the trust), fully funded or partially funded. The trust can also include special provisions, such as a spendthrift provision.

Trusts can be complicated. However, they are custom made for each individual situation. And they are powerful financial planning tools. Please call to discuss what might be best for your situation.