When you get married and start growing your family, estate planning is probably not one of the first things you think about, but it may be one of the more important things to consider. Many may think that it’s only necessary to think about writing a will when you are getting on in years, but it’s never too early to start planning. Also, estate planning isn’t just for those who have started a family; if you have any assets at all, you have an estate and this requires some planning to determine what happens to your assets if you were to pass on. With assistance and advice from the financial advisors at Aureus Wealth Management, you can be confident that your finances will be taken care of.
Do You Really Need a Will and Estate Plan?
Answer: yes. If you have any retirement or investment accounts, life insurance, a car, home, children, or business, do you know what will happen to the money or the assets when you pass? All of these things will be covered when you create a will and an estate plan. When someone passes away without a will that details how the money and the assets will be dispersed, a judge will make those decisions for you, even what happens to your children. If you have specific wishes for how your estate is managed and dispersed, the only way to ensure that everything is done correctly is to create a will and estate plan.
You may have heard the terms will and trust, but do you know the difference? The main difference is that a will goes into effect when the person dies and a trust goes into effect as soon as it is created. A will designates a person who will carry out your wishes and details about who will receive your assets. A trust allows a property to be dispersed before and after death. With a trust, there is a trustee who holds legal title to the property and a beneficiary who receives the property. With a trust, you can also specify how the money will be used. If you want money that your children receive to be used specifically for education, you can use a trust.
Why Wills And Estate Plans Are So Important
- They protect your assets from going to unintended beneficiaries. If you want your family home to be left to your oldest child, your classic car to your cousin, or if you want your children to be raised by your sister, these requests needed to be put into a will in order to be legally enforced.
- A significant part of estate planning is ensuring that your loved ones have the smallest tax burden possible. By drafting a will, you can save your heirs a large amount of money on federal and state estate taxes and inheritance taxes.
- If you are mentally incapacitated, having a will gives you an opportunity to decide your long-term care.
There are several different aspects of creating a will that many are not aware of. With the guidance and support of a financial advisor, we can provide you with all of your options, and together we can create a plan that will protect your assets and ensure your property is handled correctly after you pass.
This topic is never an easy one, but with the trusting and reliable financial consultants at Aureus Wealth Management, you can be confident that your family is taken care of.