CARICOM Attorneys-At-Law, Johanan L. Lafeuillee

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The Differences Between Estate Planning in the US And Estate Planning in the Caribbean

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Estate planning is important to ensure that your wealth is distributed in accordance with your wishes to ensure your loved ones’ financial security. The benefit extends to ensuring that your family is taken care of and disputes are mitigated.

Generally speaking, US estate planning systems and practices are a different animal compared to estate planning practices in Caribbean States – which is a bit more of a direct oatmeal and milk approach.

 

Estate Planning in The United States / Globally

Generally, US estate planning utilizes the following tools / documents:

  1. Traditional Wills and Living Wills
  2. Trusts
  3. Powers of attorney
  4. Advance Care Planning Directives

 

Estate Planning in Caribbean Countries / States

Estate planning in the Caribbean utilizes a more direct and cost effective approach. This approach is informed by the legislative and judicial, as well as economic and other societal nuances, that are unique to each island.

On one end of the spectrum, estate planning could take the haphazard form of Jane Doe orally declaring to all and sundry who gets her house and land on her death. Or what is to happen to her cash savings. Or who within the family gets absolutely nothing for whatever reason, as the case might be.

Though such oral declarations often don’t hold their weight when the estate goes to administration, some beneficiaries respect the wishes of the dead enough to give full effect to it. Other beneficiaries don’t.

Traditionally speaking, formal estate planning in the Caribbean is often understood as  “having a will” done before you’re near dead or on your deathbed hardly able to sign (for added dramatic effect as there is an unspoken societal taboo in some circles about doing a will when you’re not yet ready to kick the bucket). The fun may not be yet over.

That “living will” may not be executed in the proper manner as prescribed by law. Or it may never be found after the decedent’s passing if it was not sealed at the local court’s registry. Speculations as to who might have hidden or destroyed or otherwise tampered with the will make for an entire series of Netflix worthy drama.

Anyhoo. Outside of sitting with a lawyer to draft a will or codicil, Caribbean estate planning generally utilizes the following:

  1. Powers of Attorney
  2. Trusts (if younger beneficiaries or a larger estate is involved as the case might be and if the practice is normative within the island concerne).
  3. Other instruments such as doing an immediate and outright Deed of Gift to or a Deed of Gift naming the grantor as Joint Tenant with the intended beneficiary(ies) may also aid in estate planning efficiency.

An Experienced Estate Planning Attorney in Grenada Can Help

Although the US estate planning culture and practice might be considered as being “light years ahead” when compared to the Caribbean region, we all generally desire the same thing. To ensure that our loved ones are taken care of when we transition out of our earth suits.

Always consult an attorney if you need help setting up an estate plan within the Caribbean.  Contact estate planning attorney Johanan Lafeuillee by clicking the link below.

The Differences Between A Will And A Trust

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There are many different ways to prepare for your future with your estate planning attorney. There are many different types of documents, plans, and decisions that you have to make when deciding how you want to distribute your estate. When looking at the options and deciding what estate plan is best for your situation, you may find yourself wondering: what is the difference between a will and a trust? How do I decide which is best for me?

There isn’t just one type of will or one type of trust. It depends upon your personal situation, so it could look different for everyone. However, there are a few key differences that you want to make sure you take note of when you are making your decision.

Wills, And Avoiding Probate

One of the biggest differences between a will and a trust is that a will in Grenada does not avoid probate. A will can settle a dispute as to how an estate will be distributed, but it will still have to go through the lengthy and often expensive probate process.

A trust, on the other hand, avoids the probate process, which can be especially beneficial if you choose to title your home, vehicles, or other assets into a trust.

Although a will itself cannot avoid probate, a will can help you avoid probate if a title company makes a mistake. For example, if you intended to title your house into your trust but the title company does not follow through renaming the house, a will can protect your assets and intentions and prevent you from having to go through probate because of the mistake.

Trusts, And Nomination of a Guardian

Another huge difference is how a person can nominate a guardian for any minor children they have. A trust cannot nominate a guardian in any way. If you have children of minor age, it is important that you use a will to name their guardian in the case of unexpected events.

A trust can rename your assets with a designation to your children, but your trust cannot establish a guardian for your children.

Wills And Trusts Working in Tandem

A person will almost always need both a will and a trust. These two documents work hand in hand in distributing your estate, nominating a guardian, and establishing control of your assets. Anyone who owns a home in Grenada will need to have a trust to title their home in. Very rarely will a person only need a will: unless they own a very modest estate, or do not own a house, you will almost always need both a trust and a will.

Wrapping Up

Everyone’s estate plan will be different, depending on their personal needs and circumstances. Although decision making regarding your estate plan can be confusing and daunting, remember that your estate planning attorney is there to help you remember the differences between each document, and help you decide the best solution for your situation. Schedule a callback by clicking the link below to talk more with me about what plan might be best for you!