When it comes to having a will in New Mexico, there are a few things to keep in mind. Once a will has been established and everything is dictated before the time of your passing, it is not a set-in-stone document. The will can be contested and can go into probate to redetermine the division of assets just like if you did not have a will at the time of your passing.
Benefit of Trusts
When it comes to trusts in the State of New Mexico, it is truly a much more secure document when it comes to the division of assets. The creator of the trust puts assets into the trust with explicit directions of how to distribute the assets at the time of passing. Once the time has come and the creator of the trust does pass away, there is a trustee who is associated with the trust and they are the one to see that all assets are distributed appropriately or that they are disposed of properly, depending on what has been outlined in the trust.
Pros and Cons of Wills
Wills are a great way to divide up your assets without having to set any provisions for the assets that are included. The most common pros and cons of establishing a will are listed below:
Pros:
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You can leave property to whomever you choose.
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You can name your guardian for your children and provide all their needs for them.
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The ability to plan for personal matters.
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It can be amended or revoked at any time.
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Doesn’t have to be expensive.
Cons:
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Possible challenges of authenticity
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May have to be placed into probate.
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It is a public record.
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Your will may not cover all tax concerns.
Pros and Cons of Trusts
A trust is a more practical form of handling your assets, at the time of your passing. When it comes to having a trust, you as the creator of the trust can dictate how and when the beneficiaries can receive the assets that are being bequeathed to them, while still legally protecting all of your assets. The most common pros to keep in mind are listed below:
Pros:
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It can ultimately save a lot of money.
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Trusts stand up to contests very well.
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Heirs can take control if the trustee becomes ill or incapacitated.
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Incapacitates can be challenged.
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Living trusts are extremely flexible
Cons:
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Does not cover future assets
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The trust is the legal owner of all properties listed within.
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Does not save any taxes
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Creditors can hang around for a long time.
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Not all assets can be included in the living trust.
This video does cover wills and trusts in New Mexico. The thing to keep in mind is to do what is best for your family and the future you want to provide for them.
