Choosing the Best Possible Financial Plan for Your Loved Ones’ Future

Preparing a plan regarding how one intends to ensure the future of his/her loved ones upon his/her death may be quite a challenge due to the many different legal documents and concerns that need to be dealt with. Making one, however, such as an estate plan, need not be complicated, and since death is a natural occurrence that everyone will go through, making preparations early can prove to be really advantageous and beneficial, especially to your family.

Ensuring your family’s future may be done through a Will or a Living Trust. The contents of a Will, which become effective upon your death, basically allows you to name your chosen heir/s, the specific individual/s to whom you wish to bequeath your property; it also lets you appoint an executor or personal representative, whose tasks shall include: the collection and management of all your assets; selling of your real estate or securities, if necessary; payment of your remaining debts; and, the distribution of what remains from your assets (after all debts have been paid) to all your named heirs. While still alive, you as the testator or the person who made the Will, can make changes to it as often as deem necessary. To be able to execute it, it will first need to be filed in the local probate court (in the state where you reside or where the estate you own is situated) and then subjected to probate, the legal process that will prove your Will’s validity.

A Living Trust or an “inter vivos” trust, on the other hand, is a written form of agreement, which specifies the transfer of your properties to a Living Trust. It requires a trustee, a role which you, yourself, can assume; the law, however, allows a trust company or a bank to assume this role.

A Living Trust manages all transferred properties for the benefit of your heirs named in the trust agreement. You can also revoke or amend it (just like a Will) any time before your death. But, while a Will may be executed only upon your death, a Living Trust takes effect as soon as you create, and transfer your properties into, it. Its length of effectivity is considerably flexible too since you can specify when exactly you want it to end, like when the beneficiary turns 23, two years after your death, and so forth.

There are definitely many things that you may want to consider before deciding whether you should prepare a Will or a Living Trust. According to the website of Peck Ritchey, LLC, this is because while the latter also offers the huge benefit of it being exempt from the probate process, it is still not outrightly recommended to everyone.

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