If you have children under the age of 25, you should have a trust rather than a will.
David: I've been toying with the idea to set up either a will or some trust, and just haven't really got around to doing it. We're seeing if you all do that both in law there, and how about what I need to do either a trust or a will? I'm not sure what I need.
Attorney Tom Olsen: Are you married or single person, David?
David: I'm married with two young children.
Attorney Tom Olsen: If you got two young children, you are automatically in the category of having a trust. When you hear about people talking about trust out there, they're all talking about the same thing. That's what I'm talking about for you, a revocable living trust. Most people are using that trust for the purpose of avoiding probate. You would be doing that as well. You'd be using your trust for a second purpose and that is this is that if you and your wife both passed away, and your children were under the age of 25, your children would not get that wealth outright.
Your wealth would be held in trust. It would be used to help your children go to college, help them buy a car, help them buy a house, and then they would not get the money until they reach age 25. Yes, David, you absolutely need to have a trust. By the way, David, when you sign a trust, it's as though you have built an empty vault or an empty safe, and so that if you and your wife have IRAs, retirement accounts, and life insurance, you'd be naming each other as primary beneficiary, and you'd be naming your trust, not your children, your trust as a contingent beneficiary.
David, to do that trust for you, there's really four things I need to know from you. Number one, who gets your wealth when you and your wife both passed away? That's pretty easy, your kids. Number two, who would be the parent to your children, if you both passed away and then your kids were under the age of 18? That's very important for you guys to choose. You don't want the courts to decide that situation. You want to make that decision.
Then number three, who would take care of business for you if you both passed away? Who would manage this money on behalf of the kids? A first and second choice. Then number four, who would make healthcare decisions for you and your wife? If you're in a car wreck and comatose, who would decide what doctors, what hospitals, what medications? David, if you can get those things figured out, everything else would be very simple for us.
David: All right. Perfect, then. Sounds good. Thank you, sir.
Attorney Tom Olsen: All right, David, we look forward to being of service to you. We're the Olsen Law Group in Orlando. We do offer a free initial consultation to talk about your estate planning. We can do that in person or over the phone, whatever you prefer. Contact the Olsen Law Group at olsenlawgroup.com, or our main number 407-423-5561.