While August is often known for its hot days and back to school planning, what many don’t know is that it’s National Make-a-Will Month as well. With that said, many believe the process of creating a will to be complicated and burdensome; however, it does not need to be. Below is an examination of some of the factors you should keep in mind when creating your will, as well as other helpful estate planning tips.
Why Have an Estate Plan?
For starters, it is critical to recognize the importance of having an estate plan in general. Your estate includes any assets you own and having an estate plan can determine to whom those assets pass on to following your death. From your house to your favorite jewelry, you will want to make sure all of your assets end up with the individuals you would like to have them. Without an estate plan, the court system will determine who receives your assets after you pass away – a scenario you very likely want to avoid.
What is a Will and What Does It Include?
A will is a legal document that outlines your wishes regarding who you would like to receive your assets following your death. A will can also help determine who you would like to care for any minor children you may have if you were to pass away. When creating your will, you want to choose an executor that is reliable and can be trusted to act upon their duties after your passing.
What is a Trust and What Should You Know?
Another important estate planning document is a trust. It is key to note that there are many different types of trusts, which allows you the flexibility to set up the one that is best suited for your needs.
A trust will allow for you to place assets that can be held onto and then distributed by a trustee to the appropriate parties following your death. A trust is created by a trustor and managed by a trustee in the best interests of the beneficiary.
Trusts are often created in instances where minor children are involved. The trustor will choose a reliable trustee to manage the assets and distribute them to the child at the appropriate time. For example, if you have a minor child and leave assets for them in a trust and subsequently pass away before your child turns 18 years of age, you can have the trust set up so that the child (the beneficiary in this case) receives the assets being held for them upon turning 18 years old.
Is Your Estate Plan Only Meaningful After You Pass Away?
The answer to the above question is no. Your estate plan absolutely is meaningful while you are still alive. Life can bring us many changes, and it is critically important to keep your estate plan up to date after creating it. If you don’t do so, your assets could end up with someone you don’t want to have them. In addition, should you become incapacitated in any way and unable to care for yourself or be of sound mind, your estate plan can determine who you want to care for you, your finances, any minors in your care and more.
For any questions and assistance regarding the creation or updating of your will, or any of your other estate planning needs, we are here to help. Contact us today to learn more about how we can work with you.
For more information regarding various estate planning and elder law topics, view our resources page, where you will be able to find previous blog articles, newsletters and our informative webinar series.
