Estate planning can be stressful. If you are looking to begin the process, you may be wondering where to start. Two of the most important estate planning documents are wills and trusts. Read on to learn more about what each document does, how to create it, and the difference between them.
What is a Will?
A will is an important document that can greatly help you and your loved ones when it comes time to settle your estate. A will allows you to state your wishes for the future, and makes things easier for you, your friends, and your family later on. Some of the assets you may include in your will may be real estate, bank accounts, securities, and items of personality. You can also include gifts for your friends and family members, be it a letter you’ve written, or a favorite photograph. Passing away without a will is called dying “intestate.” This means that your estate will be divided by the state of New Jersey.
What is a Trust?
A trust is another document that may be used to manage your assets when it comes to planning for your estate.
What are the Different Types of Trusts?
There are two main types of trusts:
Revocable trust: This allows you to change the guidelines laid out in the trust at any time
Irrevocable trust: You cannot make any changes to the guidelines of the trust, once it is filed it is binding
There are many categories of trusts available including:
- Charitable remainder
- Charitable lead
- Special Needs
There are so many different types of trusts, they can suit almost any of your estate planning needs. Reach out to an experienced attorney to learn more.
Which One is Better?
There is no clear-cut answer to this question. Everyone is different, and every estate plan will be different. Many people choose to create both wills and trusts. The best thing you can do is speak with an experienced estate planning attorney. A knowledgeable attorney can help you create a comprehensive estate plan that meets your individual needs. Contact our firm today for more information.
If you have any questions or concerns regarding estate planning, contact our firm to speak with an experienced and knowledgeable attorney. We understand the process can be stressful, but we are here to guide you through it, each step of the way.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.