Frequently, people may opt to put off estate planning because they find the process morbid or daunting. However, the reality is that estate planning could bring numerous benefits to both you and your loved ones.
Tackling unanswered questions can help to bring peace of mind as well as clarity over the important issues that estate planning involves. Outlined below are three of the most common estate planning questions.
Once my estate plan is set, does it ever need to be looked at again?
Typically, life will not stay the same for too long. For example, you may choose to get married or divorced. Additionally, you may plan to have children. Furthermore, your financial situation can also change within a short period of time. For instance, you may acquire a new business or purchase a new family home. It is important to ensure that your estate plan is able to adapt to changes in your family life and financial circumstances.
Is there a difference between a will and a trust?
Wills and trusts are similar in the sense that they are both legal instruments that can form a key part of an estate plan. However, there are some notable differences between the two. First of all, a will only becomes active upon the event of death, whereas trusts can be engaged upon their creation. Furthermore, a will typically assigns property to designated individuals upon death. However, trusts have the potential to assign property prior to death. Also, a trust can generally be kept private whereas wills are typically a matter of public record.
Can I draft a will by myself?
While technically there may be nothing to stop you from drafting your own will, individuals often land themselves in trouble this way. The legal rules that oversee wills, trusts, taxes and powers of attorney, etc., can be state-specific. Consequently, if you were to draft your own will based on the laws of another state, it may be completely ineffective in the territory you desire.
Answering some of the common questions might make you feel better about estate planning. It is also important to remember that you are legally protected in Texas.