When you talk about trust and wills in estate planning, most people think that it is about their death. The reality of the matter is that it is more than that.
Your loved ones have the liberty of using wills, trusts or both to clarify on their wishes. The two are all about retaining control over your assets. This control is effective when you are alive and even after death. A simple will is the most basic way in which individuals retain the control of their assets. In cases where a lot of complexities are involved, creating a trust is the best option.
For individuals with a modest income, estate planning may be deemed to be a tedious and unnecessary engagement. That shouldn’t be the case. Estate planning, which entails both wills and trusts, is an important topic for people of all income levels. Individuals who are unable to plan in advance how their property will be distributed empower the state to do that for them. As we all know, a decision by the state is not always the best one.
If you have a child (definitely more valuable than your assets) you have to put in place measures for continued care and custody of these loved ones.
Through a will, you are able to determine the manner in which property and assets would be distributed in the event that you are incapacitated to do so. You get to name beneficiaries and deal with the sensitive matter of guardianship. As a result, you need a sensitive and ethical estate planning attorney to take you through the process of creating and updating your will. Kanzer Law could be the place you may want to go for such help. The state has its own laws for distributing assets to heirs in the event that a will is absent.
Trusts are often used to eradicate large estate taxes and safeguard the transfer of assets such that they won’t be part of public records throughout the probate process. When you form a trust, you are basically giving your property rights to a trustee in order to benefit a third party, which may be a charitable organization or your young one who is yet to come of age. Always go through your needs so as to be sure that the trust you have undertaken addresses the specific circumstance.
Regardless of your level of income, wills and trusts are an essential undertaking. If you’re in the Brooklyn area, Michael F. Kanzer & Associates is right for you. We can walk you through estate planning process. Contact us today for a free consultation.