What is estate planning? What common documents are associated with estate planning? These are some of the questions that a majority of people tend to ask. The answer to these questions will help you understand what estate planning is and how it can benefit your life.
Estate planning is basically how you plan for the unexpected.
This is not just planning for death; it also includes planning for disability or incapacity. Estate planning ensures that our wishes are honored when something happens. This is done by creating an estate plan which includes wills, trusts, and other legal documents.
A Will is a document in which you state who gets what after you die. It is usually written before you die. You should have two copies of your will. One copy goes to your lawyer, and one copy goes to your family members. Your will states how much money you want to leave to each person.
A trust is a way to give away your assets without having them go through probate court. There are different types of trusts. Some trusts are revocable, while others are irrevocable. In a revocable trust, you can change the terms at any time. An example would be a living trust where you name yourself as a trustee. As the property owner, you can decide how much money you want in the trust and who gets it.
