[1]In a recent Caring.com study, 58% of American adults admitted to not having a will or trust in place. If you’re one of them, the time is now to start planning. While mortality is a tough topic to discuss, it’s of the utmost importance when it comes to making sure your loved ones aren’t caught up in costly, time-consuming processes.
One of the most significant reasons for having a will is appointing a guardian for children who are under 18 years of age. Second, a will can also help ensure that your assets are distributed equitably among your heirs, instead of being distributed based on the laws of your state.
In addition to creating a will, it’s important to also consider establishing a trust. Because there are several trust options to choose from, your best bet is to sit down with an estate planning professional to choose the one that works best for your situation. For example, a revocable living trust offers the ability to manage your assets during your life while ensuring that your wishes are carried out once you pass. These trusts also enable your loved ones to avoid the stressful process of probate. Irrevocable trusts offer less flexibility, but can be a good option for individuals with larger estates.
In the end, trust and estate planning is important for everyone, not just the wealthy. Even if you have few assets and no dependents, taking the time to set up an estate plan is one way to ease the burden on the people who are most important to you.
If more information on trust and estate planning, contact a ShindelRock tax professional [2] today.