Estate planning is a process in which you are able to put your affairs in order. It will allow you to know that your assets will be distributed in the way that you want them to be, to reduce the taxes on your estate and to avoid probate and other issues that are associated with dying intestate.

What’s included in an estate plan?

Your estate plan will include a will or trust, a directive to your physician about final care requests or a statement of power of attorney, final instructions for your funeral and other information.

When should you go back over your estate plan?

If you have a will in place or are drafting one, you should be sure that, when situations change you go over your documents. You’ll want to be sure that you go back over your estate plan when:

• A beneficiary dies or there is another birth in the family
• The value of your assets changes dramatically
• You move to another state
• Tax laws change

A trust is any arrangement in which a trustee holds the legal title to property for someone else. A living trust is a trust that you create and that goes into effect while you are living rather than after your death.

What are the advantages of a living trust?

Any property that is left through an independent trust does not have to go through probate court when your assets are distributed after your death. Unlike a will, a living trust is not made public after your death. The more complicated that your living trust is, additionally, the more likely you are to receive additional benefits including the reduction of estate taxes.

How much of a hassle is it to create a living trust?

Depending on where you live you will be able to create a living trust on your own. However, consulting an estate planning attorney is often beneficial.

Do I still need a will if I have a living trust?

In a word, yes. A will is necessary to address any property that is not included in the trust and how you want it to be distributed after your death.

At it’s most basic, a will is a formal, legal document that allows you to determine what happens to your estate after you die.

Who can make a will?

In most states, in order to make a will an individual must be over the age of 18 and of sound mind.

How long is a will in effect?

A legal will – once executed in writing, signed by the person making the will and by witnesses – will be in effect until it is revoked or amended. Re-marrying, divorce, having another child or adopting a child can all revoke a will. It is important to review your will periodically to make any necessary changes because it’s uncommon for situations not to change over time.

Can a will be changed?

A will can be changed, however formal documentation must be made. In many cases, this is done by creating a new will.

What happens if you don’t have a will?

If you do not have a will and die intestate, your estate will be divided in accordance with the laws in place in your state.