![]() Property is also distributed faster in a trust because you avoid a lengthy probate court process, so it’s sometimes preferred for that reason. In that situation, the property will stay in the trust until the beneficiaries reach a certain age. Trusts are also helpful to hold property when beneficiaries are minor children who are not yet fit to handle their full inheritance. You can place money, physical assets, or anything else of value in a trust. This is typically so the beneficiaries (individuals or institutions who stand to inherit something) can use the property at some point in the future. ![]() TrustsĪ trust is a legal contract that allows another person (the “trustee”) to hold property for you (the “grantor”). Online will services offer interactive questionnaires to help you create a legally binding will specific to your state. If you already know where you want your assets to go, it’s easy to make a will without a lawyer. Going through probate court without a will is more time consuming and expensive, with the money coming out of your estate first. Your estate will go through the probate process whether you die with or without a will, but having a will ensures your executor honors your wishes. Probate refers to the process of distributing your estate after you’ve died. WillsĪ will, formally called a “ last will and testament,” is a legal document stating how you want your executor (the person legally obligated to administer your estate) to distribute your assets when you die.ĭying without a will is known as dying “intestate,” which means state law will dictate what happens with your estate. Some people even include a letter of instruction with their estate to walk their family members through the documents. Most of this process consists of creating and finalizing estate planning documents, such as wills, trusts, powers of attorney, and living wills. At the very least, everyone should have a simple estate plan in place. The biggest benefit of estate planning is peace of mind-you’ll know your wishes will be fulfilled for the benefit of your loved ones. This type of planning helps determine who can make decisions on your behalf, who takes care of your dependents, and how to avoid unnecessary taxes and waiting periods.Įstate planning covers any decisions regarding money, property, medical care, dependent care, and other matters that can arise when a person dies. Organizing your affairs in preparation for the end of your life is an important task, and estate planning is an ongoing process that includes much more than writing a will.
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