Estate planning can be a complicated process, but we all have to do it. Creating a will or living trust can make things much easier for your family when you pass, and that will give you peace of mind. There are some big differences between these two arrangements though. A Woodland Hills trust attorney can tell you if a will or a living trust is a better fit for you.
What Does a Will Do?
A will allows you to do a few things. You can:
- Decide where your assets will go
- Choose a guardian for your children
- Name an executor to carry out these tasks
It’s also important to know that your property will have to go through the probate process after you pass. This can take a little while, but it should be simple enough if you are clear about who your beneficiaries should be. Going through probate when there’s a will is easier and quicker than going through probate without one.
Having a will can be beneficial no matter how much money you have. Even if you do not think that you have a significant estate, our lawyers can help you draw one up.
How Does a Living Trust Work?
A living trust is a bit more complicated, but it can be worthwhile if you have a significant amount of assets and real estate. It can cost more to set up a living trust, but such an arrangement does prevent your assets from going through the probate process. This kind of trust also allows your loved ones to access some of the assets you left to them while you are alive.
One thing that’s important to remember is that a living trust needs to be funded. If you have property that is not put in the living trust, it would end up going through the probate process. So it’s a good idea to update your trust occasionally to review its terms and ensure that it’s properly funded.
Does a Will or Living Trust Reduce My Estate Taxes?
These are not really arrangements meant to reduce estate taxes. They are simply designed to pass down property and choose beneficiaries. If you have a significant estate, enough to trigger a federal estate tax, a will or living trust by itself is not designed to lower that bill.
What Other Documents Should I Prepare?
Preparing a will or living trust is a good idea, but it’s just the start. You should also have:
- A document that outlines your final wishes
- An advance healthcare directive that tells your loved one what kind of medical care you would want to receive if you were incapacitated
- Financial and healthcare power of attorney
- A document that includes your login credentials for online banking and similar accounts
Talk to Our Attorneys Today
When you need help with your estate plan, contact the Law Offices of Yacoba Ann Feldman. A lawyer from our team can sit down with you and help you figure out what needs to be done. Don’t try to tackle this complex task all by yourself.
