Many in Texas know that it is important for a person with a large estate to create a plan for the distribution of their assets. What many of them do not realize is that it is just as important for a person with a smaller estate to consider estate planning. Creating a plan can ensure that the wishes of a person are adhered to after their death.
There are several estate planning tools that can be of help to people in Texas as they create plans. These often include wills and trusts. Both instruments have advantages that should be considered when beginning estate planning. And planning properly can not only ensure your wishes are followed, but it can also help minimize tax implications for your heirs.
A will is a traditional method of estate planning. In it, a person can direct how and to whom their assets should be distributed after their death. In most situations, a will must be probated after the death of its creator. This process can be time-consuming and expensive for heirs, but may be helpful certain situations.
A revocable living trust is another popular estate planning tool. With this instrument a person creating a plan can add all of the assets that they own to the trust while they are still living. With this type of estate planning tool, a trustee should be appointed to administer the trust.
As a person works to create a plan for their estate distribution it can be helpful to obtain a good understanding of the many different estate planning tools that are available. This review will help determine the correct choice for an individual. Each estate is different, and a combination of estate planning tools may be needed.
Source: DentistryIQ, “Estate Planning Is Not Just for the Rich and the Famous,” May 8, 2012