Everyone should have an estate plan regardless of age or wealth.
According to the Wall Street Journal, there are four estate-planning documents everyone should have:
What happens if you don’t have an estate plan? If you’re alive, but incapacitated, your health and wealth could be neglected or mismanaged. Upon your death, a court would make decisions about your assets based on the default rules of the law regardless of your wishes. The lack of an estate plan could also increase the likelihood of a dispute among your loved ones. The four documents above address these concerns.
How can a trust help?
In addition to the four documents above, clients often choose to create a trust. Below are some of the reasons clients choose a trust.
- A trust avoids the stress and costs of probate court.
- The beneficiaries and property in your trust can remain private.
- You can set conditions for how your beneficiaries may use your assets.
- Your children can be protected if your spouse remarries.
- You and your spouse can maximize your estate-tax exemptions.
- A disabled relative could receive support without losing government assistance.