Making an estate plan on your own can be a bit intimidating. That’s why we recommend meeting with a Des Moines estate planning lawyer from our firm before you make any major decisions. We can answer any questions you have and tell you the difference between a will and a living trust.
What Does a Will Do?
A will allows you to state how you would like your belongings and assets to be distributed. You can give specific assets to specific family members and friends. You choose someone to be the executor, the person in charge of your will, and then they do their best to abide by your wishes.
When you have a will, your estate will still have to go through the probate process. So it can take a little while for your loved ones to receive your assets. A will also becomes a public document after your death. If you’re interested in privacy, a living trust might be more to your liking.
What Does a Living Trust Do?
This is because a living trust stays private, even after you die. It also differs from a will in a few key ways. You can still choose the beneficiaries for your assets, but if you put them in a living trust no one has to worry about the probate process. This particular kind of trust also allows beneficiaries to access your assets while you are still alive, as its name suggests. A will does not allow such assets.
A living trust can take more time to set up and it can be more complicated, but it does offer a few other benefits that a will does not. It’s generally harder to challenge one in court and a trust can protect your assets from lawsuits or creditors. For someone with a significant estate, such an arrangement can be beneficial.
What Happens If I’m Incapacitated?
Neither of these documents will determine what happens if you are alive but incapacitated. This is why you should also assign someone to have authority over your living trust and choose who to give power of attorney.
Financial power of attorney allows someone to make financial decisions on your behalf. Healthcare power of attorney allows someone to make your medical decisions. You can give both of these powers to the same person or split them up between two individuals you trust.
What Other Documents Do I Need Aside From a Will and Living Trust?
You should also have a living will whether you choose to write a will or set up a living trust. This document tells people your last wishes and what you would want if you were to be incapacitated. We also recommend leaving behind a document with your online credentials, like sign-in information for your online banking accounts.
Talk to an Estate Planning Lawyer
When you are ready to make some plans of your own, contact Herting Law, PLLC. We can schedule a consultation and tell you more about the benefits of an estate plan and how we can help you.
