A last will and testament, commonly referred to as just a “will,” is probably the primary document that most people associate with the act of designating who gets which of their assets once they are gone from this life.
If you have yet to begin the estate planning process, you’re probably not alone. Various surveys show that 40 percent or fewer of all Americans have created a last will and testament. A will, of course, is a legal document that names who will receive which of your assets when you pass away. It is the basic building block of estate planning. When asked why they haven’t started estate planning or even written a will, many respondents answer, “I don’t know how.” Others say they don’t have enough wealth to leave behind to anyone.
Estate planning is a critical part of being an adult and making some very tough decisions. An estate plan can provide instructions regarding how you want your final affairs to be handled after you pass away. Estate planning is crucial for providing you and your loved ones with peace of mind and eliminating uncertainties regarding the distribution of your property.
Trusts allow the persons who create them to exercise control, make certain that a person's assets pass to the desired persons, and more. Click here to read more regarding the utility of having a trust.
There are several tax characteristics of trusts, including gift taxes, property taxes, and more. This blog explains the different facets of taxes regarding trusts, highlighting the differences when the type of trust differs.