Creating wills and trusts are some of the best things people can do to protect their assets and their loved ones. Still, many individuals in Florida and elsewhere fail to take part in estate planning. Here is a look why creating wills and trusts is so important.
Wills spell out how an estate holder wants his or her assets distributed after death. A last will and testament also appoints an executor to carry out the instructions in the document, under the supervision of the probate court. For those with minor children, their wills can also name guardians to take care of the children in the event that the parents pass away. If an individual dies without a will, state intestacy laws will end up dictating who the heirs of the estate will be.
However, even when a will is created, the estate of the deceased individual must go through a costly and time-consuming process called probate. For this reason, many asset owners choose to transfer their assets to revocable living trusts while they are alive. The trust becomes the owner of the estate holder’s assets after the trust is properly funded, with the estate holder acting as the trustee. After his or her death, a designated successor trustee takes over and settles the trust. This kind of trust is popular because the trust is not a public document and does not have to go through probate court.
Many individuals neglect the crucial steps of putting together wills and trusts simply because they feel they lack the time or are skittish about contemplating death. Of course, death is inevitable and can happen when least expected. Therefore, it simply makes sense to plan for it in order to protect one’s assets for loved ones. An attorney in Florida can provide asset owners with the direction they need to engage in well-considered, comprehensive estate planning.