When it comes to Estate planning
It's best to adopt a solution that is best suited for asset protection and making your wishes known. A combination of a last will and testament and suitable family trusts provides the greatest opportunity for protection. Trusts are preferable when protecting assets (items of financial value) during your lifetime and on behalf of your named beneficiaries. A will, on the other hand, is much better suited to passing along items of sentimental value. Additionally, it's best for setting up power of attorney and end-of-life planning. What happens when you pass away without leaving a will? Here are a few things you should know.
No Will, No Trusts
It is important to make efforts to settle your estate before you pass away. Otherwise, legal entities will have to determine how to allocate your assets and other property. In many cases, the immediate family takes precedence, as long as no other claims exist. Thus, it is reasonable to assume that a spouse and/or children will inherit your estate in lieu of a will or other legal structures like trusts. Unfortunately, other claims to your assets and property may exist. For example, if you have unpaid debts, claimants could come after your estate for repayment. In addition, other family members could lay claims to your property like heirloom furniture, jewellery, or art. Even with a will, your estate will have to go through the probate process. That is why many people elect to pass along assets through a trust. However, with no will and no trusts in place, you leave your estate planning in the hands of officials. They are bound to follow the law rather than putting the best interests of your loved ones first.
With Trusts in Place
This still isn't ideal as wills and trusts serve different purposes. Yet, at least if you have a family home trust in place, your spouse and/or children won't have to fight for a place to live. Items with no monetary value cannot be placed in a trust. However, the remainder of your property may be subject to probate. That is in addition to any assets you have not yet placed in trust. Estate planning is essential if you want to protect your wealth, assets, and other property during your life. It will ensure that they go to loved ones when you're gone. If you have yet to create a will and trusts, now is the time to get started.
So why not learn more and register with TrustUs today.
After all, it's in your hands.