This blog recently answered the question regarding what a trust is and how it can help with an overall estate plan. An estate plan is a good idea for anyone at any age, regardless of the value of their personal property or number of assets they own. Wills and trusts provide different options to consider for transferring assets. There are a number of different estate planning tools to be aware of not just limited to wills and trusts.
In addition to wills and trusts, other estate planning tools include a living will or advance healthcare directive and a power of attorney which can help the estate planner account for possible incapacitation and help family members handle the estate planner's medical and financial concerns based upon the estate planner's stated wishes. There are also different types of trusts designed to address certain needs.
It is important to be familiar with the options available because they can help determine the estate planning tool that best achieves the estate planner's goals based on the asset being transferred or the outcome they are attempting to achieve. There can also be important tax and cost saving implications associated with an effective estate plan. Additionally, it is important that the estate plan contains validly executed documents to ensure the estate planner's wishes are carried out.
Understanding how wills and trusts can help transfer assets can provide important peace of mind for the estate planner as well as the estate planner's family, friends and loved ones. It is useful to know which combination of estate planning tools best achieve the objectives of the estate planner and ensure their wishes are fulfilled.