In casual conversation, many people use terms like "will" and "trust" interchangeably, possibly because they are unaware of the specific differences between these two types of documents. However, these two legal tools serve different and mutually important functions, and usually work together to provide protections for people's property and wishes once they pass away or are incapacitated.
Parents don't like to think about what will happen with their children if both parents pass away. As unpleasant as this thought is, it is necessary for anyone with minor children to take the time to make plans for if the unthinkable does happen. In fact, thinking about this now might help you to rest easier knowing that the children will be cared for appropriately.
You're well aware that you plan to leave significant assets to your heirs, not just a nice little windfall. You're happy to do it. You've worked hard for your money and you love your family.
Setting up your estate plan does not have to be complicated. It is true that you will have to do some work and think about how to set things up to get everything how you want it. One thing that makes people think that this is a difficult process is that there are so many different tools that you can use to ensure everything goes where you want it when you pass away.
Planning your estate is slightly complicated, and you may be correct in that it takes time and effort over several weeks or months to get your estate plans in order. As you work through your estate plan, you'll notice that one thing you can have is called a trust.
Say the term “estate planning,” and most people will think of either a will or a trust. While these are obviously important aspects of the process, so much more is actually involved in estate planning.
When it comes time to tackle the estate planning process, many people assume that the creation of a will is the only option they have. While this is something to consider, you don't want to stop there. You may find that some type of trust is exactly what you need in order to reach all your estate planning goals.
Choosing to create a will is a very important decision. It’s one that requires thoughtful planning and careful execution. Acknowledging how you want your affairs handled in the event of your passing is not a pleasant task. But doing so keeps you in control of your own healthcare, ensures your loved ones are properly cared for and offers many other benefits.