While death is a subject that few of us care to talk or even think about, it is something that should be discussed frankly and clearly. Death is one of few things is life that is guaranteed, and doing the best we can to prepare for it financially and legally is a very important decision. Estate planning involves the preparation of a will and living will, as well as a trust in many cases.
Your will is a written statement of how you wish your assets and other things to be handled in the event of your death. Creating a will can help your loved ones act in a time of grief by outlining your funeral and burial wishes and by giving them a direction to move in to help settle your estate. A living will, or advance directive, gives someone medical power of attorney for you in the event that you are in a coma or otherwise unable to make your own medical decisions. For many seniors, a living will is the only way to ensure that you are treated as you wish to be in the event of a prolonged illness or serious medical condition.
A trust is an agreement that acts much as a will, giving your assets and properties to third parties. Ownership is transferred while you are alive, however, meaning that the estate will not have to go through probate court after your death. For people with multiple assets, a trust is a very important legality.
To put it simply, estate planning is very important. In the event of your death, your loved ones will need a clear idea of how to handle finances and property. By setting up a will and trust, you can make your wishes clear, ensuring that your property and assets are disbursed in the way that seems best to you.
