Wills and Trusts
The essential components to all estate plans include a will, Power of Attorney and living will. A will is an important document that expresses your wishes when you pass away. It outlines how you wish to have your property distributed including assets, real property and other tangible items. A will also names who you wish to be the executor of your estate. Should you have young children, a will also names a guardian and makes provisions for your children.
The type of will you need changes over the course of your life. In order to serve its purpose, a will must be kept current with life changing events such as marriage, divorce and the birth of a child. Also, should your financial circumstances change, you may need additional planning to avoid or minimize estate taxes. Other external factors out of your control may also prompt the need to update your will, such as a change in the tax laws. For these reasons, it is important to review and update your will periodically.
Trusts are created in many estate plans to hold assets for the benefit of another person or entity. A trust can be either set up and become effective during your life or after you die. Trusts are commonly set up to manage money for young children and ensure they are provided for.