Drafting a will may feel morbid, but when it comes to taking care of your family, it is necessary. Otherwise, your estate may fall into the court’s hands. Even with a proper will, does your family have the financial resources to wait for its disposition?
Probate is a vital court proceeding that ensures those you trust carry out your final wishes. While it is a necessary court process, it is also lengthy. Diversifying your estate may leave your loved ones in stable financial condition until probate concludes.
What is a trust?
You may associate a trust account with the ultra-wealthy. However, this is not the case. Anyone can utilize a trust to disburse money and property to someone else. It may also give you tax breaks during your lifetime since it moves those assets out of your name. The benefit to a trust after your death is that it does not go through probate and instead passes to those named as trustees.
Does joint property go through court?
When you are a co-owner of property or accounts with another, that person takes control of it when you die. This applies to tangible property, such as real estate and cars, in addition to financial accounts and intangible property.
Who gets your retirement money?
When you set up your retirement account, the holding company requested you name one or more beneficiaries. Upon your death, the company disburses the account to those you choose. Anything with a beneficiary, such as insurance policies, bypasses probate and may quickly fund the people you name.
While a will is a necessary start to an estate plan, considering other documents may help your family move on more comfortably after your death.