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Estate planning — deciding between wills and revocable trusts

On Behalf of | Apr 22, 2020 | Estate Planning

How one passes property to heirs is just as important — if not more — as deciding which assets to distribute to heirs. There are generally two estate planning documents that people in Lake Charles should consider for inheritances. For some, wills are appropriate for this purpose. Others might benefit more from revocable trusts.

A will typically lists a person’s property as well as who should receive what. This is a fairly straightforward process that allows a person to make his or her wishes known. There are a couple areas to watch out for when creating a will, though, including jointly owned assets and accounts with named beneficiaries. An account like an IRA will go to the person who is named as the beneficiary, not necessarily the person who is listed in the will.

Revocable trusts are sometimes referred to as living trusts and can also be used to distribute inheritances. Trusts can skip the time-consuming and costly probate process and make assets available to heirs much earlier. There are also certain tax benefits to using trusts, but the cost of establishing one is a bit higher than a will.

There is no one right answer when it comes to estate planning. Each and every person in Lake Charles has to consider his or her own needs when deciding how to pass on inheritances to heirs. This is not always an easy process and there is a lot on the line, so many people choose to speak with experienced attorneys about their options.