With the help of estate planning, you can make sure that your possessions are managed appropriately after you pass away. There are many things you’ll learn along the road, and this process is frequently difficult.
Here are some things you should be aware of before making an estate plan:
1. Dying without a will isn’t preferable
Some people die without an estate plan. You have died “intestate” if you pass away without leaving a will. This may be important because if you die intestate, the state will distribute your assets to your relatives according to a preset hierarchy, and that may not remotely resemble what you actually want. It may also take a while before your heirs get the assets, which can be a big burden on your family.
2. Updating an estate plan is important
You can update an estate plan as often as you need. It’s also often crucial to update an estate plan every few years to include new assets and heirs. There are a few cases where people updated their estate plans after a life event. For example, you may wish to update an estate plan if you were recently married or had children or grandchildren.
3. Wills and trust are different legal vehicles
Both a trust and a will effectively disperse assets in accordance with the testator’s desires. People typically create a will as their first estate planning document. challenged. However, by transferring assets to a trustee for short-term holding and distribution in accordance with the testator’s instructions, a trust can avoid better avoid unnecessary taxes and minimize potential disputes or challenges.
If you’re ready to get your estate plans started, you may need to learn more about your legal options so that you can get the right documents in place.