Do I Need a Will or a Trust?
Do I Need a Will or a Trust?
The short answer: yes. Everyone needs a will, a trust, or both. These estate planning tools ensure that your legacy is carried out according to your wishes and that your loved ones are provided for after your passing. A properly prepared trust can even help avoid probate—a lengthy, public, and often expensive court process that occurs when there is no valid estate plan in place.
And here’s the truth: wills and trusts are not just for the wealthy. Regardless of the size of your savings or whether your property has primarily sentimental value, having a plan in place brings peace of mind and control over what happens after you are gone.
Why Wills and Trusts Matter
In today’s world, almost everyone has an online presence—photos stored in the cloud, social media accounts, email, online banking, Venmo, PayPal, or shopping profiles. Without an estate plan, your loved ones could lose access to these accounts or find them locked indefinitely. With a plan, you can specify who has access, whether accounts should be deleted or transferred, and how any funds should be handled.
Avoiding State Recovery for Medicaid Benefits
Nursing home care can cost thousands of dollars per month. While Medicaid can help cover those costs, the state may legally try to recover those expenses after your passing by making claims against your accounts or even your family home. With proper planning, you can reduce the risk that your loved ones will be forced to sell property to repay those costs.
Reducing Income Tax Concerns with Retirement Accounts
Many people are unaware that inheriting a retirement account can result in income tax for beneficiaries. Without proactive planning, your loved ones could face unexpected tax burdens. Including your retirement accounts in your estate plan can help protect your nest egg and potentially reduce your tax liability.
Maintaining Control of Your Legacy
Estate planning allows you to determine how your money and property will be distributed. Maybe you want to provide for your spouse and also ensure your children from a prior relationship are cared for. Maybe you want to safeguard inheritances from divorce, creditors, or financial mismanagement. Thoughtful planning makes it possible. Without it, your family’s wealth could disappear quickly—studies show that 70% is gone within two generations and 90% within three. A will or trust ensures your values, assets, and wishes live on.
Give Your Loved Ones Peace of Mind
Discussing your wishes with your family is essential, but conversations alone are not legally enforceable. The only way to make sure your goals are honored is by working with an experienced estate planning attorney to create a legally sound will or trust.
Don’t put off this step. Taking the time to plan now will save your loved ones stress, money, and heartache in the future. In many ways, it is one of the greatest gifts you can give them.
