If you do not have an estate plan, the idea of executing one can be overwhelming. After all, you have many options to consider. Three estate planning documents you may want to start with include life insurance, a will and a trust.
Life insurance
Many people take out a life insurance policy to help provide for their loved ones should they unexpectedly pass away. However, life insurance can serve as more than just a replacement salary. Life insurance can be used to pay for burial costs, funeral costs and other end-of-life expenses. Even if you are in your elder years, you can still look into taking out a small life insurance policy to pay for these expenses.
A will
You may have a will already, and if not, you will like to seriously consider executing one. A will is the legal document that lays out who you want to inherit which of your assets. If you do not have a will upon your death your estate will be divided to your heirs per state law known as “intestate succession.” This can be a lengthy, expensive process and the results may not be what you would have liked them to be.
A trust
Some people find that they need more than a will in their estate plan. A trust is another tool for administering assets after you pass away. Depending on the type of trust executed a trust can be used to reduce taxes, qualify for Medicaid and pass assets on to your beneficiaries with contingencies attached. Another advantage of a trust is that it bypasses the probate process entirely, which can save time and money.
Estate planning does not need to be daunting
Those in the Tucson area who are considering estate planning will not want to delay. Sometimes taking the first step is the hardest, but you may find estate planning is not as daunting as you initially thought, especially with the help of a professional who can help explain your legal rights and options.