When you die, it is important to have either a will or trust in place. These estate planning documents can lay out exactly what you want to happen to your property after you pass away. Perhaps you want to give a cherished family heirloom to your child or make a donation to your favorite charity. Perhaps you want your estate to pass on not only to your children, but also to your grandchildren, nieces or nephews. There are a lot of opportunities when it comes to creating a will or trust to see that your property is passed on the way you like it.
It is important to understand the difference between wills and trusts. A will is a written declaration of who you would like your property to pass on to after your death. Wills can also cover details about your end-of-life wishes, including details regarding your burial, funeral or cremation.
Trusts allow the creator to set aside property, so it will avoid probate. In this way the creator's legacy can be better preserved. A trust can also dictate what is to happen to a person's property after they die. When it comes to trusts, there are many types available. Revocable trusts, irrevocable trusts, charitable trusts and spendthrift trusts are only a few.
When it comes to estate planning, it's important to avoid certain pitfalls in creating wills and trusts. It's important for the financial and emotional well-being that one's end-of-life wishes are spelled out very carefully. With the right help, this can be done in an effective manner.