As the year comes to a close, New Yorkers are not only thinking about their resolutions for the coming year. With family gatherings during the winter holidays, it is important to think about the future and how to protect your assets and care for loved ones.
Estate planning might not be the top conversation topic this holiday season; however, beginning the conversation, even if it is just with a legal professional, can help ensure your wishes are properly memorialized in writing. And understanding your wishes will help establish the documents needed to create an estate plan specific to your needs and wants.
Creating an estate plan
While an estate plan could contain various documents, the focus will be on wills and trusts. In simple terms, a will is a document that outlines how your assets and property will be distributed following your death. Additionally, a will can specify guardianship for minor children as well as your wishes for funeral arrangements.
In contrast, a trust is a legal entity that holds and manages the assets placed in the trust. These assets are designated to specific individuals or entities. New York does not subject trusts to the probate process, allowing you to keep these assets private and distributed in accordance with your wishes.
How a will and a trust work together
There are many pros and cons with wills and trusts. Additionally, you have many options when it comes to creating either estate planning document. One option is to include both a will and a trust in your estate plan. These are legal tools that can complement each other, making it an important option to consider.
Having both a will and a trust helps you develop a comprehensive strategy that not only protects your assets but also provide for your loved ones after you pass. Furthermore, including both a will and a trust offers a level of flexibility and the ability to incorporate everything. A will could be used to cover any assets you forgot to place in the trust, including those acquired after the trust was established.
An estate plan should be created with your wants, needs and wishes in mind. Even if you do not have much or a complex estate, creating an estate plan can give you peace of mind and ease the process for your loved ones after your passing.