According to a recent study by Caring.com, 58% of American adults have not yet created a will or trust. If you find yourself in this group, now is the time to start planning. While discussing mortality may be difficult, it is crucial to ensure that your loved ones do not face costly and time-consuming processes.
One of the primary reasons to establish a will is to designate a guardian for minor children under 18. Additionally, a will helps ensure that your assets are distributed fairly among your heirs, rather than according to state laws.
In addition to drafting a will, consider setting up a trust. Given the various trust options available, consulting with an estate planning professional can help you choose the most suitable one for your circumstances. For instance, a revocable living trust allows you to manage your assets during your lifetime and ensures that your wishes are carried out after your death, while also helping your loved ones avoid the complexities of probate. Alternatively, irrevocable trusts offer less flexibility but may be beneficial for individuals with substantial estates.
Ultimately, estate planning is important for everyone, regardless of wealth or assets. Even if you have few possessions and no dependents, taking the time to create an estate plan can alleviate burdens for those who matter most to you.
If more information on trust and estate planning, contact a ShindelRock tax professional [1] today.