As people age, it becomes more important for them to think about estate planning. For instance, you may have certain requests in the event of physical incapacitation or death. A great way to ensure that your wishes are carried out is to create a will or a living trust. Consult a local estate-planning attorney to see if one or both of these options are right for you. Here is a look at the difference between wills and living trusts:
There are two types of wills: a final will and a living will. The final will is the document that is read off after a loved one’s passing. This legal contract explains how someone’s property will be distributed at the time of his or her death. It can be modified or completely overhauled anytime before death. Meanwhile, a living will explains what should happen in the event of a medical emergency. The creator of the will can decide in advance whether to be kept on life support after a traumatic injury. A living will can be used with the medical power of attorney to grant one of your family members the legal power to make decisions in the event of your incapacitation.
If you own property or other assets that require consistent management, you may want to consider the creation of a living trust in order to manage these possessions as you get older. This allows you to avoid the probate court system and instead pass the torch for your estate in a private way. This can be a particularly good idea if you would like your financial affairs to stay out of the public record. However, a living trust does not function until it is funded, which often makes this option more expensive than the creation of a static will.
Deciding whether to create a will or a living trust can be a complex decision that depends on your unique financial situation. If you are thinking about either of these options, consult an estate-planning attorney as soon as possible. New York and New Jersey households should contact the skilled team at D'Agostino & Associates by calling (718) 967-1600 today.