Because the mortality rate of men is considerably high compared to women, the latter, in most cases, remain behind to care for the family. This cause is an apparent reason why every woman should take a keen interest in these documents and their processing. Another misleading myth that you should wipe off your mind is that the documents are only for wealthy people. We all know that every family has assets and at least an estate. However small, it is enough reason to process a will or trust for your properties. Let’s see what to consider before you decide on the right document for you.
The Difference Between Wills and Trusts
Although these documents may serve a similar purpose, they are significantly different. As a result, you must be able to tell what is the purpose of a living trust and its benefits as well as those of a will. A living trust, for example, can become active when the grantor is incapacitated or dead. On the other hand, a will only become active in case the writer dies. It’s therefore important to talk to your attorney about your interests and wishes and get the correct advice.
Setting Up Trusts
The main assets placed on the trust include investments, cash, or real estate. Unlike wills, trusts can be expensive to set up but are very helpful. They also come in different types, and therefore it’s best to contact a CPA or an attorney to help you come up with the right option. This decision will depend on your goals for the assets, like who your beneficiaries will be and how you wish the assets be managed.
Creation of Wills
Wills are essential documents. They allow you to choose where your assets end in case a tragedy occurs. When writing a will, ensure that you state who should receive your property and the percentages. If you have minors, be sure to mention a guardian in the will. The importance of choosing a guardian yourself is that your assets will end up in the hands of someone you trust.
Another crucial part of the will is keeping it up to date. Ensure it is updated and never forget to involve an attorney in the whole process.
Choosing an Executor Or a Trustee
The executor is the person you leave the responsibility of distributing your estates. In case you don’t mention an individual in the will, the government will choose for you. On the other hand, a trustee manages and distributes your property when you are incapacitated or die. It’s vital to scrutinize and choose wisely who you decide to trust your assets to or who you give the power to distribute them. This process in itself is a way of ensuring the security of your assets and loved ones.
The Different Types of Trusts
Trusts come in different forms. While making a decision, analyze your goals thoroughly, and develop a solid structure of how you want the assets to be in the future. Know whether you will need to opt-out of the trust and go for the revocable form, or your decision is permanent and considers the irrevocable option. Also, think about who your beneficiary should be. If you want your grandchildren to benefit, then a generation-skipping trust will serve your need.
Benefits of Trusts and Wills
Traditionally, men were the ones who were entitled to the right of owning properties. That is a fact that has become obsolete with time since nowadays women also occupy the job market and have a lot of assets under their names. This turnaround means that like men, women should also be vigilant in ensuring properties are well managed and end up in the direction they wish even after death. The main benefits of writing a will or putting your property on the trust include the following.
- Avoiding probation
- Protecting family and loved ones
- Ensuring control of the property
- Assurance that your wishes are catered for
- Saving money spent on tedious lawsuits in case the government decides where the assets go
During this period of lockdown, minimal movement and social distancing, setting up a trust, creating a will, and bringing the witnesses to sign, it may not be secure. Talk to your attorney and be advised on the best way to go about the process.