Estate Planning - How does it work?
(Generated with AI)
Estate planning is crucial for ensuring your assets are distributed according to your wishes after you pass away. With the right wills and trusts service, you can secure your legacy, provide for your loved ones, and avoid unnecessary legal complications. Our comprehensive comparison helps you choose the best service for your unique needs, offering peace of mind that your future is well-planned.
What is the difference between a will and a trust?
A will is a document that specifies how your assets should be distributed after your death. It goes into effect only upon your death. A trust, on the other hand, can be used to begin distributing assets before death, at death, or afterwards. Wills and trusts are both crucial tools for estate planning, but they serve different purposes and are governed by different rules.
Why do I need a will or trust?
Having a will or trust ensures that your assets are distributed according to your wishes after you pass away. Without these documents, state laws determine how your assets are divided, which may not align with your preferences. They also allow you to appoint guardians for minor children and make arrangements for dependents with special needs.
How do I choose between a will and a trust?
Choosing between a will and a trust depends on your personal circumstances, including the size and complexity of your estate, your privacy concerns, and your financial goals. Consulting with a legal expert can help you decide which option best suits your needs, taking into account factors like cost, the probate process, and tax implications.
How can I start with my will or trust?
Start with your will or trust by considering your assets, your beneficiaries, and your goals for how you would like your estate managed both during your lifetime and after your passing.
Are online wills and trusts legitimate?
Yes, online wills and trust plans can be legitimate and legally binding, provided they are created in compliance with state laws. Online platforms can offer a convenient and cost-effective way to create wills and trust forms, especially for straightforward estates.
We compare reputable online legal services that allow you to create wills and trusts. These platforms offer templates that can be customized to your situation, often at a lower cost than hiring a traditional attorney. However, for complex estates or specific legal advice, consulting with an estate planning attorney is recommended.
What should be included in an estate planning checklist?
An estate planning checklist should include creating or updating your will, setting up trusts if necessary, choosing an executor for your estate, nominating guardians for minor children, specifying power of attorney and healthcare directives, and reviewing beneficiary designations on accounts that pass outside of a will or trust, among other items.
How often should I update my will or trust?
You should review and possibly update your will or trust after major life events such as marriage, divorce, the birth of a child, significant changes in your financial situation, or changes in estate law. It's generally recommended to review these documents every three to five years to ensure they accurately reflect your current wishes and circumstances.
