MEstate planning is not something that people think about often or even like to think about in general. Most young people haven’t thought about their own immortality, and death itself is a sensitive topic. As we go about our lives and build relationships and families, we accumulate assets along the way. Whether you’ve just bought your first home or you’re about to retire, estate planning is something to be considered. There are many questions that people ask about estate planning, and a lot of them are the same questions.

Four of the most common estate planning questions are:

  • What is the difference between a will and a trust? While wills and trusts are both tools of estate planning, they do differ in some ways. Wills are effective after death while trusts can be in effect while you’re still living. Trusts are concerned with everything placed within the trust while a will is concerned with everything owned by the person who created the will.
  • When should I make changes to my estate plan? Estate plans can be changed at any point in time, but there are a few life events such as marriage, divorce, having children, death of a loved one, etc. that can all require changes in your estate plan.
  • Why do I need an estate plan? There are many reasons that people create an estate plan and despite what people think, you don’t need a large estate to create one. Estate plans help to distribute any assets you have, big or small, which can help avoid any conflict within the family upon your death.  You can appoint specific people that you trust to distribute your assets and ensure that certain assets stay within the family.  Estate plans also deal with more than just things that you own.  An estate plan can tell others who you want to take care of your minor children if both you and your spouse die while a child is a minor.
  • What happens if I die without a will? When individuals die without a will, the laws of the state of your residence determine how your assets will be distributed upon your death. This is also called dying “intestate”. The laws vary depending on if you were married or had children and if you have no relatives, all of your assets go to the state. 

It’s common for people to have questions about what will happen to their assets after they die. Having an estate plan can be a huge benefit to your family upon your death and it can potentially relieve the stress your family may feel. If you have any questions about estate planning or would like to get started creating one, contact Thornton Law Firm today.