Estate Planning

Why is Estate Planning so important?

It's simple. You work your entire life for something and you want to ensure you leave it to those who matter most to you! No matter the size of your estate, there is nothing better than a piece of mind knowing that your estate will be taken care of upon your passing and your personal plan will take effect.

Estate planning in a nutshell is essentially a few documents that control how your assets are currently held or how they will be held/distributed upon your death. But most importantly, these documents control "Who" gets to control these assets before and after your death.

What is a Last Will and Testament? Why do I need one?

A Last Will and Testament (a "Will") is a legal document that provides instructions on what happens to your real or personal property upon your death. When someone creates a Will, they are called the Testator. The Testator considers which beneficiary will inherit a particular piece of property, called a bequest. The Will then directs a person called the Executor, to ensure the beneficiaries receive their bequests upon the death of the Testator through a process called probate.

A Will should be updated after every life changing event (i.e., Marriage, Divorce, Birth, Death, Changing State of Residence). When they are updated and are legally sufficient, a valid Will can be an effective tool to avoid family battles and expensive court proceedings over property of the Testator.

What is a Trust? Why do I need one?

A Trust is a legally created fiduciary relationship which effectively allows the transfer and control of real or personal property into the control of another. There are many reasons to transfer property under a trust, such as tax benefits, protection of assets or avoiding probate, but most importantly is the control of the property. There are many trusts that can be created and each has their own benefits. For example, a Charitable Trust allows assets to be controlled by a Trustee and disbursed to the named charity according to the trust documents. A Living Trust allows assets to be controlled by a Trustee and disbursed to the beneficiary of the living trust during their lifetime.

Do you want to leave your beneficiary money or property upon your unexpected death, but do not trust them to receive all of it at one time? In this case, Trusts may be the solution to your Estate planning needs.

Remember, trusts are similar to wills in that each has a designated person that distributes property for a beneficiary according to the Trust or Will documents. However, since the Trust effectively owns the property, probate is avoided altogether and assets would not normally need to be disclosed to the Court.