It’s tough for a lot of people to think about wills, trusts, and estate planning. If you plan for it now, there will be less heartache for the loved ones you leave behind later on.
Estate planning is an essential part of taking care of your family and your assets. Your estate includes everything you own that are of value – your land, home, belongings, investments, and insurance. Planning for what happens to your estate is a critical step in protecting your life’s work. Without an estate plan, your loved ones will be left with a costly (thousands of dollars) and lengthy (upwards of two years) burden sorting out the distribution of your estate in Probate court.
Estate planning answers questions like:
- How will you distribute your earnings to your current and future grandchildren?
- Who is responsible if you become unable to manage your affairs while you are still alive?
- How do you leave a portion of your stock holdings to your alma mater or charitable causes?
At ACW Professional Law Corp, we specialize in estate planning. We carefully draft wills and trusts with your guidance and provide legal counsel for which type of document best suits your needs and wishes. Wills and trusts are both legal documents that express your wishes for what happens to your estate after your death, but there are a few key differences.
The Difference Between Wills and Trust
Wills go into effect only after death and must pass through Probate court. A judge must validate the will and oversee the process of disbursement to ensure it is carried out the way the deceased person wanted. An Executor, a legal representative is assigned to carry out the will.
Wills cover property that is held in your name only (not jointly held property). Wills have some unique advantages such as allowing you to specify who will become guardian to your children and how to conduct the funeral. Wills are also considered public records.
Trusts may go into effect before, at the time of, or after death. They may be implemented without going through Probate court. In a trust, the trustor assigns another party (the trustee) to hold legal title to a property or assets for a third party (the beneficiary). The trustee manages the property or assets until the beneficiary is deemed able to assume management.
Trusts may be used to protect the inheritance for minors or persons with mental disabilities who may not be able to manage an inheritance independently. They include certain advantages such as helping to avoid probate court and in some cases, avoid estate taxes. Trusts are more expensive to establish and maintain, however, and they cannot be easily revoked after they are created.
Estate planning reaches beyond establishing wills and trusts. In addition to wills and trusts, a solid estate plan should include:
- A durable power of attorney
- Healthcare power of attorney
- Beneficiary designations
- Letter of intent
- Guardianship designations
ACW Professional Law Corp is experienced with all components of estate planning, including drafting wills and trusts. Take the time to build a solid estate plan now to put your mind at ease that your family and assets are taken care of now and in the future.
Call ACW Law Corps today. (562) 472-0393 or click here to schedule an appointment.