An estate planning attorney will be able to walk you through the process of establishing your initial estate plan and revising it periodically to ensure that it reflects your current wishes. Gibbons Law Firm has experiencing helping people with estate planning at the Lake of the Ozarks, and would be happy to assist you as prepare to move forward with this process. This week, we're here to familiarize you with the process by helping you understand the difference between two common types of estate planning documents.
Wills & Revocable Living Trusts
Wills and trusts are important documents that are commonly used in the estate planning process. They can (and should) both be updated periodically so that they meet your needs as your financial and familial situations change. It is not until your death that these documents become officially set in stone. Though similar, these documents each offer different advantages and serve different purposes. Here is a quick look at some of the primary purposes these documents serve.
Will
A will is an estate planning tool that allows you identify whom should inherit your property after you pass away. It is relatively inexpensive to prepare, but it does not prevent your estate from being passed through probate after your death (which can be an expensive as well as time-consuming process). At the time of your death, your will becomes public record.
One of the most important uses of a will is to appoint a guardian for your children under the age of 18 in the event that something unexpected should happen to you. A will is the only estate planning tool that can be used for this purpose. Minors cannot legally own property, so if you wish to leave property to children under the age of 18, you will have to appoint someone else to manage the property until your children's 18th birthdays.
Revocable Living Trust
A revocable living trust is an alternative estate planning tool. With the exception of appointing a guardian for your children, it serves many of the same purposes that a will does - that is, it can be used to identify whom should inherit your assets. Revocable living trusts allow for much greater detail and control in the planning process, however. For example, you can choose at what age your wish your children to inherit your assets (such as 25 instead of the "default" age of 18).
A revocable living trust can also be used to appoint a trustee and/or power of attorney to manage your assets, healthcare decisions, and other important responsibilities in the event that you become incapacitated.
A revocable living trust is often more expensive and more time-consuming to prepare than a simple will, but it helps make up for the additional cost by allowing your estate to avoid probate. Instead of being tied up in probate procedures for months or even years, your assets should be able to be distributed directly to your heirs. Another advantage of a revocable living trust is that it remains private after your passing - it does not become public record like a will does.
Contact Gibbons Law Firm For Help Planning Your Estate
While these examples provide a general explanation of the different advantages offered by these estate planning tools, a complete discussion of the different advantages offered by each of these documents is beyond the scope of this blog. If you would like to learn more about the specific features of these documents, contact our Lake of the Ozarks estate planning attorney by calling 573-348-2211.
Because wills and revocable living trusts serve slightly different purposes, most people build estate plans with both of these (and sometimes additional) documents to ensure that all of their needs will be met. Gibbons Law Firm can help you evaluate your situation and build an estate plan that will meet your specific needs. For more information about our estate planning services in Osage Beach MO, visit our website at www.RGibbonsLawFirm.com.
Remember, your initial consultation with Gibbons Law Firm is always free.
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Gibbons Law Firm
4075 Osage Beach Parkway, Suite 300
Osage Beach, MO 65065
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