Estate planning is crucial for everyone, regardless of their economic circumstances or family relationships. With an estate plan in place, you can make sure your assets will be handled correctly both before and after your death, and you can make provisions to ensure that your loved ones will be cared for properly while also addressing your own needs. While a will is an essential part of any estate plan, it may not be sufficient to protect your assets and ensure that your family's needs will be met. A living trust can be an important addition to your estate plan, and it can offer numerous benefits that other estate planning tools cannot.

Benefits of Living Trusts

A living trust is a legal entity that you can use to hold and manage your assets during your lifetime while providing instructions for how assets will be distributed to different beneficiaries. Assets in a trust are managed by a trustee, and they may be distributed to multiple different beneficiaries. With a living trust, you can name yourself as a beneficiary, ensuring that you can use your assets during your lifetime, and you can change the terms of the trust at any time to distribute assets to beneficiaries either before or after your death.

There are numerous benefits that living trusts provide, including:

When it comes to estate planning, there are a variety of issues to consider. A person or family that creates an estate plan will need to make decisions about what will happen after someone's death, although issues related to medical care, personal care, and financial concerns while they are still alive may also be an important consideration. When determining how to distribute different assets to a person's heirs after their death, it is important to understand the difference between probate and non-probate assets. In a nutshell, probate assets are those that must be considered during the probate process, which must take place before title transfers can be performed. Non-probate assets, on the other hand, will not be considered during the probate process. By understanding how different types of assets will be transferred to beneficiaries, a person can rest assured that their affairs will be handled correctly after they are gone.

Understanding Probate Assets

Probate assets are any assets that are held in the deceased person’s name alone or jointly with another person who also dies. These types of assets pass through a court-supervised process known as probate. During this process, the court will determine who is entitled to receive a portion of these assets based on state law or instructions provided in the person's will. Typically, the deceased person’s debts must be paid off first before any remaining assets can be distributed to his or her heirs. This process usually takes months and can require expensive legal fees, and the person's survivors may not be able to access their inheritance right away.

When you are creating an estate plan, it is important to understand all the options available. Some of the most important considerations you may face may be related to how you can provide for a person with special needs. However, different issues may need to be addressed depending on whether a person has resources available to them or whether you are putting solutions in place to provide assistance to a loved one with a disability. While special needs trusts can be beneficial in these situations, it is important to understand the differences between first-party and third-party special needs trusts.

The primary benefit of a special needs trust (SNT) is that it provides assistance for a beneficiary who has a disability or other special needs without impacting their eligibility for government benefits. Since assets placed into a trust are not owned by the beneficiary and are not considered to be among their available resources, these assets will not affect their ability to apply for or receive benefits such as Supplemental Security Income (SSI) or Medicaid. A third party known as a trustee will manage the assets in the trust and ensure that they are used for approved purposes. This can help the person meet their ongoing needs and provide them with resources they can use in their daily lives.

Creating an estate plan is an important step in ensuring that your wishes are known and respected, no matter what may happen in the future. An estate plan may contain multiple different types of documents, including a will and a living will. Both documents play an important role in making sure that your wishes are carried out correctly. However, there are key differences between them that must be taken into account when planning for the future.

What Is a Will?

A last will and testament is a legally binding document that states who will inherit your assets after you pass away. It will also name an executor who will be responsible for carrying out your wishes, and if necessary, you may appoint a guardian for your minor children. Your executor will also be responsible for settling your debts and any other monetary obligations. While your will can be amended at any time while you are alive, it will only take effect upon your death.

A will is one of the most basic elements of any estate plan. Without a valid will in place, state laws will dictate how your property and possessions should be distributed after your death—which may not match up with what you would have wanted. For this reason, having an up-to-date will is critical to ensure that your wishes are followed after you pass away.