IS NOW THE RIGHT TIME TO MAKE AN ESTATE PLAN?
It isn’t always clear to people when the right time to plan for death is. It is an unpleasant thought to entertain, and most people go their entire lives without really thinking about what comes after for their family. While it is an uncomfortable subject to discuss, death is an inevitable aspect of life, and preparing for it is essential for both your own peace of mind as well as that of your family.
Two of the ways to manage your estate and prepare for when you are no longer with us: a trust and a will. A will is a set of instructions for what you want done with your estate and your assets; however, in order for your will to be enacted and your assets distributed, your family must open what is known as Probate, which is a legal case with the court for the administration of your estate. It requires the involvement of an attorney as well as a six-month period where creditors are given notice of the decedent’s death and allowed to make claims. This process in total usually takes about one year or longer to complete and varies in cost.
A trust is also a set of instructions for your estate, but the key difference is that instead of it just being instructions for after you die, it is also a legal entity that is created and has the ability to hold property, particularly your real estate. When you create a trust, you deed your property to your trust, with the trust becoming the owner of the home. You then manage the trust and all assets contained within it. When you pass away, your designated trustee will manage the distribution of your assets held within the trust. The benefit of the trust is that a probate matter usually does not need to be opened and does not need to put out a 6-month notice to all creditors. The trust allows your family to distribute your assets privately and provides much more control over the administration than what is provided by a Will.
Having your estate plan ready to go early in life is the best way to ensure your property is protected and to save on the costs of estate planning. If you wish to make these early steps to protect your assets and get your plan for the future in order, please consider contacting the Law Office of Andrew Szocka P.C. at 815-455-8430 or email us at info@szocka.com. Our dedicated estate planning attorneys look forward to assisting you!