No matter what stage of life you are in, estate planning is essential and ensures all those close to you are taken care of. An estate plan is a legal document that helps care for your loved ones after death or during incapacity. As we celebrate simplicity day, we want to make it as simple as possible to create your estate plan.
Here are our tips:
Take Time to Determine What You Want & What You Have
Take time to think about what you want to happen in case of death or incapacity and start to document your assets.
Understand if you need a will or a trust
- Will = transfers assets to the individuals you choose through public probate
- Trust = holds assets, avoids transfer taxes, probate and is private
You can have a will and a trust simultaneously, using a trust to avoid tax burdens on investments in the will. Choosing to have both can protect your beneficiaries from future lawsuits, protect the assets you leave them, and help ensure your loved ones receive the money you want them to have. Typically, wills are less expensive in the short term but trust often are in the long run.
Choose your executor carefully.
An executor is responsible for making financial decisions after you die. It is essential to pick someone you trust to administrate objectively. An estate plan is essential for taking care of loved ones and, with planning, it can be executed smoothly.