Planning for the future may include creating a legal and financial strategy that will give you the opportunity to outline your wishes and long-term preferences. This includes drafting a will that will leave instructions for your heirs and beneficiaries regarding the distribution of your assets after your passing. It also provides you the opportunity to designate a person to act as a guardian of your minor children. While a will is generally the first step in the estate planning process, you may benefit from including other things in your plan.
One important addition for many Arkansas adults is a trust. This is a tool that will provide you the opportunity to set aside and protect assets for specific use. There are different types of trusts, and the specific one that will work best for your individual situation depends on your goals for your assets and objectives for your estate beneficiaries. A trust is a practical step for many different purposes you wish to accomplish during and after your lifetime.
The benefits of a will
One of the primary benefits of a will is that it gives you the opportunity to have the final say over what will happen with your assets in the future. You can decide which heirs will get which assets, an important step that could reduce conflict over your estate in the future. Assets passed through a will could be subject to certain estate tax penalties, and it is important to consider this potential impact on your heirs of any decisions you make. Additionally, assets passed through a will have to go through the probate process.
The benefits of a trust
A trust gives you the chance to accomplish something specific with your assets after you pass away. Trust assets are not subject to the probate process, and you can name a person to oversee the distribution of trust assets on your behalf. Through a trust, you can leave money to charity, set aside funds for a grandchild’s college education, care for a special needs loved one and more.
The right approach for your plan
There is no single solution to estate planning. You have the ability to create a strategy that implements various tools that will result in an overall plan best suited to your individual needs and objectives. An assessment of your case will help you understand the specific tools that will work best for your unique goals and concerns.