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Estate planning can be a confusing and complex process especially if concerns over price, types of documents, or potential legal barriers are on the front of your mind. However, with the right estate planner by your side, creating these documents does not have to be a scary or expensive process.
A will is a legal document that can spell out your wishes regarding the distribution of your assets, care of your children, funeral expenses & more, after your death. A will generally includes designation of an executor– who carries out the provisions of the will, beneficiaries– those who are inheriting the assets, and instructions– for how and when the provisions in your will are executed.
Failure to prepare a will typically leave decisions about your estate in the hands of judges or state officials and has often been the source of family strife.
Considerations when creating a will:
Probate is a court-administered process in which the validity of a will is proven to the court. It is a mandatory process for any will. If accepted, the probated will then becomes an enforceable legal instrument. The executor (or personal representative) is given legal power to dispose of the will’s assets in a manner specified by the will.
There are a few things to consider about probate: During the probate process, a will may be contested. Grounds for contesting a will often claim the will does not reflect the wishes of the person who created the will, or that the will does not meet legal standards of the state. Also, when probated, the contents of a will become public record. This is not ideal for many people who wish to keep their financial and estate affairs private. Another consideration is that not all estates require probate. A non-probate estate, like a trust, bypasses the probate process. A trust is less expensive than the costs associated with probating a will and takes less time to implement.
A trust is a legal relationship in which the holder of an asset or right gives it to another person or entity who holds it solely for another’s benefit. A trust can be used to determine how a person’s money should be managed and distributed while that person is alive, AND after their death. A trust helps avoid taxes and probate. It can protect assets from creditors, and it can dictate the terms of an inheritance for beneficiaries. A trust is a legal entity employed to hold property, so the assets are generally safer than they would be with a family member. Even a relative with the best of intentions could face a lawsuit, divorce, or other misfortune, putting those assets at risk. A few reasons for creating a trust might be ensuring care for a physically or mentally disabled dependent, for privacy, to protect children, or for tax planning.
The good news about wills and trusts is that you don’t have to be rich to write them. Whether you choose to go to an estate planning lawyer or write your will yourself, you don’t need to be rich to create a will or trust. It’s a common misconception that only people with significant assets need a will or trust — that’s not true. Estate planning is about protecting and providing for your loved ones.
Wills and trusts are legal documents that ensure your assets go where you want them to while you’re alive and after you pass away. People often make the mistake of thinking that having a will is enough or that creating a trust means there is no need for a will. Neither of these assumptions are true. Both of these important documents are essential when it comes to preparing for the future. It’s crucial to select the right estate planning attorney to create a customized will or trust that meets your needs.
