Wills and Trusts: Essential Tools for Protecting Your Legacy

Wills and trusts are essential tools for protecting your legacy and ensuring that your assets and loved ones are taken care of after you are gone. However, despite their importance, many people still do not have wills or trusts in place.

According to a survey conducted by Caring.com ([1]), only 44% of Americans have a will, and only 36% have a trust. This is a concerning statistic, as it means that a significant portion of the population is not properly prepared for the eventuality of their death. Without a will or trust, your assets may be distributed according to state laws, which may not align with your wishes. In addition, your loved ones may be left to navigate the legal process without clear guidance, which can be a stressful and time-consuming process.

There are several reasons why people may not have wills or trusts, including a lack of awareness about the importance of these documents, a lack of understanding about how they work, and a belief that they are not necessary if you do not have significant assets. However, it is important to note that wills and trusts are not just for the wealthy – they are essential tools for anyone who wants to ensure that their assets and loved ones are protected after they are gone.

There are several types of wills and trusts to consider, including:

Simple wills: A simple will is a basic document that specifies how you want your assets to be distributed after your death. It can also appoint a guardian for minor children and appoint someone to manage your estate.

Living wills: A living will is a document that specifies your end-of-life care preferences, including whether you want to be kept on life support in the event of a terminal illness or injury.

Revocable living trusts: A revocable living trust is a trust that can be amended or revoked by the trustor during their lifetime. It allows the trustor to retain control over their assets while they are alive, and it can be a useful tool for avoiding probate.

Irrevocable trusts: An irrevocable trust is a trust that cannot be amended or revoked once it is created. It is typically used for tax planning or asset protection purposes, and it can be a useful tool for transferring wealth to future generations.

By creating a will or trust, you can ensure that your assets are distributed according to your wishes and that your loved ones are taken care of after you are gone. It's important to carefully consider your options and consult with a legal professional to determine the best approach for your specific situation.

References:

[1] Caring.com. (2020). Caring.com survey reveals 44% of Americans do not have a will. Retrieved from https://www.caring.com/press-releases/caringcom-survey-reveals-44-of-americans-do-not-have-a-will