Credits: Social Media
Giving something to someone in your will doesnt mean they will get it, mortgage banker explains
Though allocating your belongings to relatives and friends through a will is standard practice across the world, a finance expert has warned against the practice as she offered a better solution.
Whether you want to accept it or not, money makes the world go round. No amount of loud budgeting can keep you from spending it, so why not learn as much as possible to make better financial decisions?
Wills are not as simple as you think
Unless you have directly been involved with one, the function and contents of a will might be lost on you. Despite popular belief, a will and testament is not a to-do list that a lawyer simply has to enact. Instead, it’s a legal document that outlines the deceased’s wishes about their home, belongings, and assets.
Theoni Rapo (@theonithelender) is a mortgage banker and finance expert with over 208k followers on TikTok where she usually posts content about buying a home, managing your finances, and general vlog-style videos.
“When you leave something in your will, it will go through probate when you die,” she told her followers. “Probate is a legal process basically just sorting out who the heck gets what.”
Of course, when you leave something to someone in your will there is the general understanding that they will receive it. Unfortunately, that’s just not the case.
Firstly, upon your death, your case will be filtered through the courts in the hopes of expunging any existing debt. This process is incredibly time-consuming and hugely expensive, and you can’t do anything with the assets until it is over. Theoni said she heard of one woman who was in probate for three years.
Now you might be wondering what the alternative is. Though you might not have heard of it, Theoni said the best option is a living trust.
Though earlier renditions of the process were all on paper and super expensive, a company by the name of Get Dynasty has an online version. They even offer a free option, and we all love free!
Either way, you’re going to be spending money, but with a living trust, you can manage the process yourself instead of relying on (and paying) a lawyer.
People report great experiences with a living trust
Though some TikTok users had never heard of a living trust, those who had reported standout experiences. At the same time, people recalled horrid moments from probate.
“My dad had a living trust set up when he found out he had a brain tumor. I was his only kid and got the house and it was as easy as can be to take over the house when he passed. 10/10 recommend,” one person said.
Another wrote: “I used to work in probate court. We had a case that was open for 8 years because the family was fighting over a flower pot. True story.”
“My grandpa died in 2021, Im still stuck in probate. Everything in his will was to me. $9000 in fees so far,” another said.
