Planning for the future is an important step to protect your loved ones and ensure that your wishes are carried out. At Gregory D. Keenum, PA, we have nearly 49 years of experience serving the Booneville community and understand that estate planning can be complicated. 

Two essential tools for this process are wills and trusts. Both are vital for managing and distributing your assets, but they function differently under Mississippi law. Without an estate plan, the intestate laws of Mississippi will determine how your property will be divided, which may not be in line with your wishes.

Understanding the Last Will and Testament

A Last Will and Testament is a crucial legal document that details your instructions for the disposition of your assets upon your death. This document allows you to specify the beneficiaries of your property, designate an executor to oversee your estate, and, most importantly, name a guardian for any minor children you may have. Without this document in place, the court will determine how your assets are distributed according to Mississippi’s intestate laws, which could lead to unexpected outcomes and potential family conflicts.

In order for a will to be considered legally valid in Mississippi, it must meet certain requirements. According to Mississippi Code § 91-5-1, the will must be written and signed by the testator, and witnessed by at least two credible witnesses who were present during the signing. While handwritten or holographic wills may be recognized under certain circumstances in Mississippi, these types of wills are more likely to be challenged in court.

It is also important to review your will from time to time, especially after significant life events such as marriage, divorce, the birth of a child, or the acquisition of major assets.

How a Trust Operates Under Mississippi Law

A trust is a legal arrangement that allows a trusted third party, called a trustee, to manage assets on behalf of beneficiaries. Unlike a will, which takes effect only after death, a living trust can be established during one’s lifetime, allowing for the management of assets if the person becomes unable to do so.

There are several types of trusts tailored to different goals:

Revocable Living Trust

This is a popular choice because it allows you to maintain control over your assets throughout your lifetime. You can act as a trustee, managing the assets and making changes to the trust or revoking it entirely. When you pass away, the assets held in the trust will be distributed to your chosen beneficiaries without the need for any court involvement.

Irrevocable Trust

This type of trust is generally not able to be changed or canceled after it has been created. By permanently transferring assets out of your estate into an irrevocable trust, you can provide significant benefits such as potential protection from creditors and certain tax advantages.

Specialized Trusts

For specific family needs, there are other trust options available. These include Special Needs Trusts, which provide for a disabled beneficiary while protecting their government benefits. There are also Charitable Trusts that are designed for philanthropic purposes.

Key Differences: Probate, Privacy, and Control

The most significant practical difference between a will and a trust is the probate process.

• A Will Must Go Through Probate: A will is a set of instructions submitted to the court for review. The court oversees the process of verifying the validity of the will, appointing an executor, paying debts and taxes, and distributing assets to heirs. This public process is time-consuming and involves court costs and legal fees.
• A Trust Avoids Probate: Assets held within a trust bypass the court process of probate entirely. This means that your beneficiaries can typically receive their inheritance more quickly, with less hassle and greater privacy. The administration of a trust is private, unlike public records of court cases.

Another key difference between a will and a revocable living trust is the level of control during incapacity. A will only covers what happens after the person’s death. However, a revocable trust provides a smooth transition for the successor to take over management of assets if the original owner becomes unable to do so, avoiding the need for court-appointed guardianship.

Let Us Guide You in Protecting Your Legacy

Choosing between a will, a trust, or a combination of both depends on your unique family circumstances, the nature of your assets, and your personal goals. At Gregory D. Keenum, PA, we specialize in providing personalized and strategic estate planning services. Our founder, Gregory D. Keenum, and his team bring decades of experience to helping clients in Mississippi create customized plans that offer security, minimize legal complications, and provide peace of mind.

If you need assistance with drafting a will, establishing a trust, or reviewing your current estate plan, contact our office to schedule a consultation. We can help you ensure that your wishes are fulfilled and your legacy is protected as you intended.