Continue learning about the estate planning process and make sure you are ahead of the game – even if you have not created a Will yet.
You Do Not Have to Be a Millionaire to Have a Trust
Often people will assume that if they have a Trust, they must be millionaires. The fact of the matter is individuals who make under $25,000 can set up Trusts for family and other beneficiaries to distribute assets after their death. Ask your estate planning attorney about a Trust and see whether or not it will benefit you to do one too.
Often heirs and beneficiaries are shocked at what a Will and Trust contains. You can skip the confusion, argument, or anger by discussing your plans for your Will and Trust documents with all heirs and beneficiaries. By discussing your plans ahead of time, issues that would have arisen later can be taken care of before the documents are even created.
Don’t Forget Taxes
Your estate may be at risk for taxes. Therefore, when you meet with an estate planning attorney check and see whether or not your estate is at risk for taxes by the Internal Revenue Service.
Leave Tax-Free Funds to Your Spouse
You can leave funds to your spouse that are tax-free, but most estate planning attorneys recommend not doing so. If your spouse passes away shortly after you, your children who inherit that money will have to pay taxes on that balance, which are significantly higher than just receiving the inheritance on their own.