Don’t Take Chances
The matter of guardianship is another thing to take into consideration. If both parents were to pass away in an accident, who would care for the children? This question is even more profound for single parents. With the proper planning, you can name someone to act as the guardian of your children if it ever becomes necessary.
When you do the responsible thing and establish an estate plan as a younger adult, you go forward with peace of mind, and you gain an understanding of the importance of the process. As time goes on and your life situation changes, you can adjust your plan accordingly. Ultimately, your legacy goals can be embedded into a broader financial plan as you continue to mature.
Custom-Crafted Estate Plan
If you were to create a will, you would name an executor to act as the estate administrator. This person would not be able to follow your instructions and act independently after your passing. The will would be admitted to probate, and the court would provide supervision during the administration process. One negative that goes along with probate is the fact that the inheritors do not receive their bequests until the estate has been closed by the court.This will typically take around nine months, though complex cases can be stalled in probate for much longer. Expenses accumulate during the process, including a filing fee, the executor’s remuneration, legal and accounting charges, appraisal fees, liquidation costs, and incidental expenses.
The money that is spent during probate is essentially coming out of the pockets of the inheritors.These are a couple of the drawbacks, but there are a number of others. To avoid these negatives, you could choose to utilize a revocable living trust instead of a last will. The trustee that you name in the document would be empowered to distribute assets to the beneficiaries outside of probate after you are gone.This is one of multiple different types of trusts that can be used when you are planning your estate. The right choice will depend upon the circumstances, and this is why it is so very important to discuss your unique situation with a licensed estate planning attorney.