Ever thought about what happens to your hard-earned assets when you're gone? Estate planning is your answer – ensuring everything you've built goes where you want it to.
Wills: The master plan for your assets 📜
A will is your roadmap, spelling out how your assets get divvied up and who looks after your kids when you're not around. It's the backbone of estate planning, crystalizing everything for your loved ones.
Here's the lowdown on wills:
The executor: Your right-hand person 🤝 Pick someone you trust to settle debts and taxes and pass on your assets. They'll be the ones calling the shots, so choose wisely.
Beneficiaries: Deciding who gets the goods 🎁 Name the people or organizations who'll inherit your assets. Be specific so there's no confusion or drama later on.
Guardianship: Keeping your kids safe and sound 👨👩👧👦 Got young kids? Name a guardian in your will to care for them if something happens to you. Ensure you talk to the chosen guardian first so they understand the responsibility.
Updating your will ✍️ Life's constantly changing, so update your will when big stuff happens (marriage, divorce, new kids, big purchases). That way, it'll always reflect what you want.
Legal formalities: Dotting the i's and crossing the t's ✅ For a will to be legit, it must meet some legal criteria (like being of sound mind and 18+ years old). Get an estate planning attorney to help you dot the i's and cross the t's.
Storing your will: Safe and sound 🗃️ Keep your will safe, like in a safe deposit box or fireproof safe at home. Let your executor and close peeps know where it is, so they can find it when needed.
Trusts: A flexible tool for wealth management 🔒
Trust is a legal setup where you hand your assets over to a trustee. They hold and manage those assets for your beneficiaries. Trusts let you control how your assets are managed, even after you're gone.
There are different trust types: