What Is the Difference Between a Living Will and a Living Trust
A will is document that allows you to tell the world who the people that you want to leave your estate to are. If you die without the will, you give the state the power to decide how your assets will be divided. Looking for tips for estate planning, wills and trusts does not mean that you think that you are going to die soon. It simply means that you care for your loved ones enough to plan for their future. A will should be updated on regular basis. If you made a will a few years ago, you should update it so that it can cover the properties that you have acquired in the recent past. If you die without a will, you property will be split between your spouse and children. If you don’t have a spouse and children, the state will decide who among your relatives will inherit what you left behind. A will is very important especially for people who have young kids. It is the best way to transfer your property to the minors upon your death.
A trust provides a legal mechanism that outlines how your property will be distributed when you die. It helps you to minimize state taxes and gifts. You still need a will when setting up a trust. This is because trusts deal with a specific types of assets such as pieces of property and life insurance. It does not deal with everything you own. There are plenty of reasons why you should plan the future after your death. Here are the top reasons why estate planning is so important:
1. It will help you prevent conflicts
According to the professionals at Stone & Sallus Law it is highly likely that the members your family will fight over your estate when you are not around if you never left a will. This is obviously something that you will not want to happen if you love your family. When you have a will outlining how things will be shared, they will have no reason to fight each other.
2. You will be able to leave thing as you wish them to be
What would you want to give each member of your family? There is no better way of ensuring that everyone gets what you want them to have than creating a will.
3. It is the best way to ensure that your heirs get the most from your lifetime’s work
If you want your heirs to get the most out of lifetime of work, you should outline how your estate will be shared upon your death.