Do I need a will or trust?

Answer to Question: Good estate planning dictates a marital trust for you both at least, in light of the fact your husband is terminally ill, wherein you and your husband could direct all assets into the trust by changing the beneficiary designations of the various assets to be the trust; your part of the trust would survive; however, assuming your husband is as terminally ill as you suggest, then if you are the survivor you may want to set up your trust ahead of time to receive all the beneficial assets arising from your husband's decease. The whole purpose of the trust is to have flexibility in the distribution of your assets as well as keep the estate out of probate should you in this case die simultaneously, although doubtful of occurring. Certainly, after either of you die before the other, then a trust should be put in place.

Probably yes. What happens if both H & W die within a short time of each other. Where does the money go after the second spouse dies. "Both names" is ambiguous. You have adult children which can be a problem.

It appears from what you've stated that all of the property is community property and held in your name and your husband's name. Upon his death all of the proerty will pass to you either by operation of law or through Probate. You do not need a wil at this time but after the death of your husband you should consult with an attorney regarding a will or trust to dispose of the property upon your death.

You may not need any documents to cover the first death but you certainly will for the second. Also, if your husband has not done a health care power of attorney you should definitely consider doing one to insure that his end of life wishes are honored. You should consult an estate planning attorney.