Estate Planning 101

It’s a common assumption that all you need is a will to handle how your assets are divvied up after death. But there’s a lot more to it than that, and the biggest estate planning error people make is not appropriately lining up their assets. 

If you only have a will…

A will can take care of some needs, including setting up guardianship for minors, but it doesn’t protect everything in your estate as thoroughly as a trust could. A will only gives away assets in your name, such as a bank account, business, or home, if you haven’t assigned a beneficiary and only after death. A will can certainly be helpful in its own way, but it shouldn’t be considered the primary catch-all for assigning assets. 

If you set up a trust…

That’s another step forward, but if it’s not set up in a well thought-out way with the help of an experienced pro, there’s a big chance that you can forget to include certain assets or guidelines and end up causing headaches for your beneficiaries. A trust is only good if your assets have been properly aligned with the overall plan surrounding the trust. This ensures a relatively simple process with our clients’ families; after your dear departure, your family calls the office, comes in, we go through some documents, and then they’re able to claim the assets you’ve left them. 

Trust vs. Will

There are a few key differences between trusts and wills, mainly dealing with the ease and speed of the process. With a will, each potential beneficiary needs to sign off, even if you’ve disinherited them or left them less than they think they should get. This is fine if they’ve all remained one big happy family, but in many cases this is not the reality. Things can become long and drawn out through a probate process when dealing with estranged or defiant family members, sibling rivalries, and other disagreeable situations. 

With a trust, the whole process goes much faster for your family, which is important while they’re still grieving. In the case of using a trust, the whole process could be done in about two to three months. In comparison, with a will, it often takes two to three months just to get the ball rolling.  

Now, if you haven’t done a will or a trust…

Give us a call. Creating a plan and lining up your assets now with the help of an experienced law professional will prevent your family from having to deal with a dragged-out hassle later. 

Want to learn more? Join us at an upcoming event! Estate planning isn’t just about “who gets what” after you pass; it’s about making life a little better for the people, places, and things you’ve held most dear.