A comprehensive, up-to-date estate plan is critical to have in place to protect you and your family. Here's what's actually at stake — and the four ways a Will and a Trust each work to protect it.
1. You decide who gets your assets
So you don't have a Will? No big deal, right? Wrong. Without a Will, state law dictates who gets your assets — even if you've already told friends and family which assets you want them to have. Regardless of how much or how little you have, make sure your wishes are known by creating a Will.
2. It takes care of your children
Who will take care of your minor children if something were to happen to you? Without naming a Guardian in your Will, a judge decides who has care, custody, and control of your children — a decision that can cause painful family conflict. Naming a Guardian in your Will is the only way to make your wishes known.
3. You can avoid probate
Anyone who has dealt with the death of a family member without a Will or Trust in place can tell you how frustrating, time-consuming, and expensive it is to sort everything out. By creating a Revocable Living Trust and transferring your assets into it, you can save your family the time and expense of probate.
4. You can control medical decisions
With a Medical Power of Attorney and a Living Will (Advance Directive), you decide who makes healthcare and end-of-life decisions for you if you're unable to do so yourself. Without these documents, your loved ones must petition a court just to be appointed to make those critical decisions.
