Most people have heard of the legal document called a last will or last will and testament. It would be possible to use a last will to state your wishes regarding the distribution of your financial resources after your passing.
While a will can be a decent choice for some people, other options exist. Under many circumstances, a trust of some kind would be a better option.
Even if you are not wealthy, you may want to use a living trust as an alternative to a last will. A will must be admitted to probate, and the estate must be probated before the heirs can receive their inheritances. When assets have been conveyed into a living trust, they could be distributed to the beneficiaries outside of probate. As a result, the inheritors could receive distributions in a more timely manner.
Plus, you could allow for limited distributions over an extended period of time if you want to prevent the beneficiaries from spending their inheritances too quickly.
More Advanced Trusts
There are more advanced trusts that can be used to accomplish more complex objectives. For example, there are trusts that can be used to provide estate tax efficiency, and estate taxes can be a big factor for high net worth families.
Asset protection trusts can be used by people who are concerned about lawsuits, and you could use a Medicaid trust if you want to qualify for Medicaid to pay for long-term care late in your life.
These are a few examples, but there are other trusts that can be used to satisfy different goals.
Though it is not the most pleasant thing to consider, a very significant percentage of senior citizens become unable to make sound decisions eventually. If you do nothing to prepare for incapacity, the state could ultimately appoint someone to manage your affairs.
You can take the matter into your own hands if you execute the appropriate incapacity planning documents. Through the execution of durable powers of attorney, you could empower agents of your own choosing to handle your decision-making if you become incapacitated at some point in time.
If you have not executed all of the appropriate estate planning documents, action is required. Our firm can provide you with answers if you have questions, and we can ultimately help you put a custom crafted plan in place.
To arrange a free consultation, send us a brief message through our contact page: Hartford CT Estate Planning Attorneys.