Estate Planning

Few people think about estate planning.? Of course, if people don’t do much in terms of savings, investment, and insurance, estate planning will not be on their priority list.

Most think estate planning is for rich people who live in mansions high up on a hill.? But in fact, everyone has an estate.? Your estate is everything you own minus your debt, such as your house, car, money in the bank, family heirlooms, etc.

Imagine you worked hard your entire life and built up an estate.? You want to pass it on to someone, but it ends up with someone else due to your lack of planning.

Thus, a Will or Trust is a tool for you to organize how you want your estate distributed when you pass away.?

A Will is a legal document that allows you to distribute your property to those of your choosing.? It allows you to assign specific items from your estate to one person and other items to other people or an organization.? Your Will should name an Executor, the person who will carry out your wishes.? Wills also give you the opportunity to pick a guardian for your young children.? The guardian will be responsible for their welfare.? If you don’t have a will, the government will use their own standard to distribute your estate, and you may not like what they do.

A Will only takes effect after you die.? However, a living trust can benefit you while you are still alive.? Living trusts are generally revocable, which means you can always make changes to them.?

With a living trust, all your assets like your home, bank account, stocks, and bonds are put into a trust, administered for your benefit during your lifetime, and then transferred to your beneficiary when you die.

Most people name themselves as the trustee in charge of managing these assets.? Thus, you have control over it.? You can also name a successor trustee in case you are unable to manage the trust.

Living trust costs more to prepare, fund, or manage than a will.? Having one helps to avoid probate costs for all the assets in the trust.? Thus, you should have a will or a living trust to take care of your family, or else the government will do it.

Proper planning with professional help can be very important for you to leave a legacy and preserve your estate for the causes you worked all your life for.

*Please contact me or message me to receive a FREE book that will explain finance as how a friend would talk to another friend.?

*Remember: There is nobody more interested in your financial future than you are, definitely not the government or your employer.? It’s your responsibility to learn the simple rules of how money works.? Understanding how money works is part of taking care of your family.?