As you plan for your estate and what will happen if you’re badly injured or pass away, something you have to consider is the financial implications of the situation. It’s important that you prepare for the potential taxation of the estate and set up beneficiary designations for your investments, bank accounts and other financial assets.
There are many ways to protect your assets and take care of your property following your death. A will is one way, though there are others, like trusts and beneficiary designations for specific assets. It’s a good idea to talk to your attorney about setting up a basic will as well as looking into other ways to protect and distribute your assets.
Should you choose a will or a living trust?
Both are potentially good options. A will is only one way that you can control how your property is distributed following your death. Your will is a way for you to express your wishes on how you want your assets to be distributed, but your beneficiaries or an executor will still need to go through probate to get that property distributed.
Another option is the living trust, which also shows how you’d like assets to be distributed. You can state when you want the assets to be distributed and who you want them to go to. You may be able to avoid probate with a living trust, but this is something to discuss with your attorney.
Early estate planning is key to making your sudden severe impairment or death easier on your family. Our website has more information on planning for taxes, asset distribution and other estate planning topics.