How to Write a Will and Why You Need One (Even if You’re Young and Broke)
How to Write a Will and Why You Need One (Even if You’re Young and Broke)
by Lisa Rowan
It’s the question we usually ask our parents late one night while sitting around the kitchen table. Or we ask our siblings when they become parents for the first time.
“Do you have a will?” Of course, if you’re facing an illness, coming up on retirement age, or have a partner or children, you should have a will. But even if you’re young and feel invincible, you should probably have a will, tool. Life can come at you fast. So can death. Before you go online and print a will from the same website where you got ordained to preside over weddings, check out this primer of all the estate planning-type documents you might want — and their true costs.
What Is a Will, Anyway? This short list will orient you with some of the terms you’ll see bandied about by estate lawyers, websites, and likely your family and friends, too.
Will: This document designates one or more executors who will settle your affairs after your death. It also lists your wishes for your assets and property, and names guardians for your children.
Probate: Probate court validates and approves wills so the executor of a will can move forward with managing the estate of the deceased person.
Living Will: Also known as an advance directive, it lists your preferences for health care if you’re unable to convey those wishes.
Trust: A trust is an arrangement that gives a second party (the trustee) the right to manage your assets or property for the benefit of a third party (your beneficiary). .
Revocable Trust: A revocable trust, or living trust, lets you retain control of your assets listed in your trust and make changes to the trust during your lifetime. When you die, the assets are passed on outside of probate court. An irrevocable trust can’t be changed once it’s finalized.
Power of Attorney: This document allows a designated person to make financial or health decisions for you if you’re unable to do so. Unless you revoke the document, power of attorney typically expires when you die.
Estate Plan: include any number of the documents above, based on your needs.
To continue reading, please go to the original article here: