There is more to estate planning than a simple will. While having one meets the needs of many, there are more estate planning options at your disposal that you may choose from depending on what you want for your estate.
Below are some of the things that you need to know.
The size of your estate and the applicable taxes
Should you have a will or trust for your estate? The answer to that may depend on its size, and the bigger your estate, the more the inheritance and estate taxes it may be subjected to. If your estate is huge, you may end up saving a considerable amount in estate taxes when you have a trust instead of a will.
Are there any special needs for a beneficiary?
If your loved one has special needs, they would be better off with a special needs trust than having someone else manage their portion of the estate. That way, you will be assured that their interests are looked after while still retaining their eligibility for government support programs.
Protecting your family wealth
A will cannot protect your family’s wealth since once the beneficiary takes over assets, they can do as they please. In such a case, you may want to consider having your family wealth held in trust for the benefit of two or three generations down the line.
Additionally, assets in a trust cannot be repossessed if your loved one defaults on a debt or in the event of a divorce.
For those who want to avoid the probate process, which can be expensive and time-consuming, having a will does not help you achieve that. If anything, a will must go through probate, and you may want to consider having a trust instead.
Making the best choice
There is no ideal or best way of doing things. It all depends on your objectives, and what works for another will not necessarily work for you. Therefore, you need to make informed actions based on the best interests of your estate and the beneficiaries when coming up with your final wishes.