For most people, these guidelines mean that you need to put your estate planning in place today. The only question is what form that will or living trust should take.
Your Will: Courtesy of the State
In reality, neglecting to prepare an estate plan just means that you are deferring to the intestate (dying without a legal will) laws that have been set in your state by lawmakers. Typically your estate will be divided as follows, in order of priority:
1. Spouse
2. Children
3. Parents
4. Brothers and Sisters
5. Cousins, Nieces, Nephews, other distant relatives
Laws differ from place to place, but are set by family relationships. In some cases, all assets will be passed along to only the survivors on the first level of priority. For example, if you have children and no spouse, your children will receive everything; however, if you have a spouse then he or she will receive everything and your children nothing. In other places, it is divided amongst the survivors on more than one level, like between children and parents.
Estate Planning for the Good of All
If you care about who receives your assets, then estate planning is necessary. A revocable living trust is an efficient tool, which will make it possible for you to take care of several things at once.
Your will won't be subjected to court-supervised probate over the distribution of assets. Your assets will go to your chosen heirs. Your assets will be distributed in the manner you have chosen. You will save your heirs from a lot of unnecessary headaches at an already difficult time.
Living trusts allow you to dictate the conditions under which your heirs receive their inheritance and when (as long as the living trust is properly worded). This will ensure that a child does not spend all the inheritance they receive and prevents a favorite grandchild from missing out on assets meant for them. You can also state who is to run any businesses you own, upon your death, and the distribution of assets from it. This will help to avoid conflict with such issues.
By putting a living trust in place, you safeguard the future of your heirs for more than just one generation and have the peace of mind that wills simply can not provide. Careful consideration of estate planning benefits everyone you love and the businesses and assets that you have worked a lifetime to build.
