Before I get into the top 3 reasons why parents need an estate plan, you may be wondering what exactly is an “estate plan”. An estate plan consists of documents (living trust, will, power of attorney, advance health care directive, HIPAA Authorization and nomination of guardian) used to determine: (1) who takes care of your children if you’re unable to, (2) who handles your finances and makes medical decisions for you if you cannot; and (3) who inherits your assets when you pass away. If you do not actively make these decisions by creating an estate plan, they will be made for you by your State’s laws.
LivingTrustify offers living trust and will based estate plans. A living trust is generally the best way to determine who gets your assets upon your passing. It is much better than a will or no estate plan, because a will or no estate plan means that your estate must go through a complicated, time-consuming, and expensive process known as probate. A living trust is not necessary if you don’t own real estate or have over a certain threshold of assets because your estate will not be subject to probate. Don’t worry about deciding whether to do a living trust or will based estate plan, LivingTrustify has a simple tool that will tell you what you need to do. Login to get access to our estate planning tools
Now that you understand what an estate plan is exactly, you may already realize the clear benefits of setting one up. If you still need some convincing, then here are the top three reasons why parents need an estate plan:
- You make important decisions now instead of leaving it up to your family, friends or a judge to make them for you. Among other things, you choose who takes care of your kids if you can’t and who manages your finances and makes health care decisions for you if you’re unable to yourself.
- Avoid the cost, delay, publicity and complexity of probate court. Without question, doing your estate plan saves thousands! That’s more money going to the people you care about rather than an attorney and the court system.
- You can choose at what age your children inherit your assets if something happens to you. Without a trust or will, your children would have full control of their inheritance at age 18. With a living trust or will based estate plan, you can select the age that children have control of their inheritance. Prior to your specified age, the trustee you name would manage the inheritance for your children.
Here at LivingTrustify, we are really passionate about educating you on the importance of estate planning and making quality estate plans more accessible. We understand how important it is to set up a living trust or will because we have seen firsthand what happens if you don’t. If you have any questions or concerns while using LivingTrustify, we are here to help.