Estate planning is appropriate and an important step at any stage in your life. It allows you to have some control over what happens to your assets after you die or become incapacitated. Even if you are a person of modest means, it’s important to have certain documents in place to cover you and your family in your absence. So what are the important documents that you need when developing an estate plan?
When most people think about estate planning, they think of creating a will. Indeed, a will is the foundational document in any estate plan. Some people only need a will on its own to handle distribution of their estate upon their passing, while others require more options. So which is best for you?
Typically, trusts are the better options for people who: have minor children, own real estate, have estates that are over $150,000, have special needs beneficiaries, or want to control how/when their beneficiaries receive their inheritance. Trusts allow your heirs to skip probate, which means they can inherit your assets in shorter time line and with less cost. Wills are typically easier and less costly to create.
No matter which option suits best for your needs, one thing is clear: everyone should have a plan in place. If you’d like to discuss which approach best suits your needs, feel free to get in touch.
