How to Plan Your Estate with Trust & Will
Image source: Pexels.com
What Is Estate Planning?
Estate planning is the process of deciding what will happen to your money, property, and other belongings after you die or become unable to manage them. It can help you:
- Take care of your family and friends
- Avoid legal problems and delays
- Save money on taxes and fees
- Respect your wishes and values
Why Do You Need a Trust and a Will?
There are two main ways to plan your estate: using a trust or a will. A trust is a legal document that lets you give your assets to a person or an organization (called a trustee) who will manage them for the benefit of someone else (called a beneficiary). A will is a legal document that lets you state how you want your assets and affairs to be handled after you die.
Both trust and will have their advantages and disadvantages, but having both can give you more benefits and options than having only one or none. Here are some reasons why you need both:
- A trust can help you avoid probate, which is the court process that checks and distributes your assets after you die. Probate can be expensive, slow, and public.
- A trust can help you control how and when your assets are given to your beneficiaries. For example, you can create a trust that pays for your spouse’s living expenses for life, and then gives the rest to your children.
- A trust can help you protect your assets from creditors, lawsuits, or other problems that may affect your beneficiaries or their spouses.
- A trust can help you reduce or avoid estate taxes, depending on the type and value of your assets and the laws in your state.
- A will can help you express your preferences for your funeral and burial arrangements.
- A will can help you make gifts to charities or people that are not included in your trust.
- A will can help you provide instructions for any assets that are not in your trust, such as personal items or digital accounts.
- A will can help you change or cancel your estate plan at any time before you die.
How to Create a Trust and a Will
The first step to create a trust and a will is to consult with an estate planning lawyer who can help you design a plan that suits your needs and goals. A lawyer can also help you with other aspects of estate planning, such as power of attorney, health care proxy, beneficiary designations, and asset protection.
The second step is to review and update your estate plan regularly. Your estate plan should reflect any changes in your life situation, such as marriage, divorce, birth of children or grandchildren, death of spouse or beneficiaries, relocation, or acquisition or disposal of assets. You should also check the laws in your state and federal tax laws, which may affect your estate plan.
The third step is to communicate your estate plan to your loved ones and trusted advisors. You should inform them of the location and contents of your trust and will, as well as the names and contact information of your executor, trustee, guardian, and lawyer. You should also discuss your wishes and expectations with them, and answer any questions they may have.
Where to Get Help
If you are ready to start planning your estate with trust and will, you may want to check out Trust & Will, a company that offers online tools and services that allow you to create, edit, store, and share your trust or will legal documents. You can also access their network of lawyers who can provide you with guidance and support. To learn more about Trust & Will, visit their website or read their blog.
0