Do You Need a Will and a Trust?

Estate planning is a crucial step in protecting your family and assets after you pass away. Understanding the difference between a will and a trust is essential for a solid estate plan.

Understanding Wills and Trusts

Let’s break down what a will and a trust entail:

• Will: A will outlines your wishes for your property after you die and names a legal representative to execute your wishes. You can update your will at any time.
• Revocable Trust: Also known as an inter vivos trust, it is created during your lifetime. You can distribute property from it during your life or after death, and you can modify it whenever you want.
• Irrevocable Trust: Once you place property in this trust, you cannot change it, and ownership transfers to the beneficiary. It removes the property from your estate for tax purposes and shields it from creditors.

Benefits of Both a Will and a Trust

Combining a will and a trust provides comprehensive protection:

• Privacy: Trusts do not go through probate, keeping their terms private, unlike wills.
• Guardianship: Wills allow you to name guardians for your children, while trusts do not.
• Specific Wishes: Wills can detail funeral wishes or designate specific items like a watch collection. Trusts specialize in asset protection and tax planning.

Other Essential Planning Considerations

Consider additional end-of-life issues such as:

• Whether you want a do-not-resuscitate order.
• Choosing someone to make health decisions on your behalf if you are unable to do so.

A living will can address these concerns within your estate plan.

Consult with Experts

State laws often influence estate planning documents. It is highly recommended to consult experts such as accountants, attorneys, financial planners, or insurance representatives for personalized advice.

Remember, thorough and effective estate planning ensures that your wishes are honored and provides peace of mind for you and your loved ones.