Making a Will and Trust
Having assets or children may make making a will and trust a must for you, especially when you do it through EstateLDA.com. The fate of one’s finances may be at risk, when you choose to avoid Estate Planning. We encourage all consumers to contact an attorney if they are unsure of their situation and then contact www.estatelda.com and we can help you prepare your living will and trust.
What is a Will within an Estate Plan?
Creating and updating your will regularly may help you avoid trouble later on. It may also help your beneficiaries when you have taken the time to properly prepare a will.
It is important to know that if there is no WILL, the sate that you reside in may decide how your assets are distributed. When you take the time to draft a will, you may prevent undue problems through your proactive approach to estate planning.
What is in a typical will?
You choose, name, or identify:
– an executor that has agreed to carry out your wishes, also known as the provisions of the will.
– the beneficiaries that will inherit the assets you have left for them.
– guardians for any minors that may inherit the things you left for them.
– specific instructions about who will receive things and the method by which they may receive them.
Are there any assets that can be passed down outside of the will?
Yes, there are assets that may be passed down outside of the will.
Both investment accounts and IRA’s may be passed to a beneficiary by naming that beneficiary. However, there may be other things to consider we you choose this method.
What is a Trust within an Estate Plan?
A trust can be thought of as a fiduciary arrangement, used for minimizing estate taxes, that may allow a third party, also known as a ‘trustee’ to hold and distribute the assets according to the plan. Trusts typically avoid probate and thus, the beneficiaries may have access to those assets more quickly than otherwise.
Real Examples of the different types of Trusts:
The 2 most common that most people are aware of are the Revocable and the Irrevocable Trusts.
1. The Living Trust, which is also known as the Revocable Trust is the trust you are most likely to have heard about. This Trust may help the passing of assets outside of probate and still allows you to keep control of everything inside that Trust. Retaining control of your assets may allow you to direct everything along the path that had intended. That Trust will stay revocable until you pass, and then it becomes irrevocable, typically.
Especially important here is that the Revocable Trust may allow you to name yourself as the trustee. A common way to think of this is that the Trust is a large truck. Inside the truck is everything that you find valuable and want to leave to others. The only person designated as the driver is you, no one else would be allowed to drive.
2. Perhaps the most important factor with an Irrevocable Trust is that it is just that, unchangeable. However, this trust is typically free of estate taxes and probate and fairly uncommon.
Contact www.estatelda.com now to prepare your state-specific Trust.
At www.estatelda.com, we help you prepare your will. A will is a legal document that tells others how you want your assets, both financial and material, distributed after your passing.