It is a common misconception that estate planning is important for those only with money or who are advanced in age. This myth is a cruel deception. Everyone can benefit from creating an effective estate plan.
Arranging for the distribution of one's wealth is what estate planning is all about. A critical part of estate planning is creating documents which outline your wishes for distributing your wealth after you die. Every individual has an estate plan. If you do not have a formal written will or trust, your estate plan is created by the state. Every state has laws governing the distribution of property when a person dies without a Last Will and Testament (i.e., dies intestate). The question is not whether you have an estate plan, but whether you have an estate plan of your own selection or one imposed upon you by the state.
Traditional estate planning involves creating a will. By preparing a will, most people feel they have effectively safeguarded their family's inheritance. However, this is often false "peace of mind." A Last Will and Testament outlines your wishes about the distribution of your wealth after death, but wills usually require probate. By having only, a wiII, you may be forcing your loved ones through months, even years, of agony in the probate court.
A Revocable Living Trust is the only method that can assist your loved ones in avoiding probate altogether.
If you have questions about this article, or revocable living trusts, please call The Kahn Law Firm for a complimentary consultation to discuss your personal estate planning needs. (626) 765-4469.