You work hard for what you have, and having an estate plan allows you to leave behind your individual legacy. A will or trust also offers peace of mind now by allowing you to decide how your family, loved ones, or pets will be cared for after you’re gone. If you don’t have an estate plan and you die, the courts may decide how your assets will be distributed, which might not align with your wishes. Instead of letting someone else (or probate court) make decisions about your estate, you can easily take control of your legacy by creating a will or trust.
When you create an estate plan, you’ll choose a trusted friend, family member, or lawyer to carry out your wishes (this role is called the Personal Representative). By planning your affairs before your passing, you’ll make the Personal Representative’s job easier and not put them in the awkward position of having to make decisions about how your assets should be distributed. A detailed estate plan will outline what charitable donations you want to make (if any) or who you want to inherit:
An estate plan also directs who should take care of your children or other dependents if you pass. Even if you don’t have children, an estate plan can ensure your pets are placed in loving care. Make sure to have a conversation with any potential caregivers before you list them in your estate plan to ensure they feel comfortable taking on the responsibility of care for your children and/or pets if a situation arises.
While people often have the best intentions when making an estate plan, sometimes a simple mistake can cause a headache down the road. Here are a few common mistakes people make during the estate planning process and how to avoid them.
Not informing family or the Personal Representative of the estate. When you appoint someone to carry out the wishes outlined in your will (the Personal Representative), you’ll want to have a conversation with that person later. Let them know that you’re entrusting them with this responsibility so it’s not a surprise later. It’s also a good idea to write down a list of where your Personal Representative can find legal documents after your passing and the names and contact information for your attorney, financial planner, accountant, etc., so they don’t have to search for this information later.
Not updating your estate plan. It’s a good idea to review your estate plan every few years to make sure the information is still accurate. You should also review your plan and make updates after major life events, like the birth or adoption of a child, marriage, a divorce, or the death of a spouse or beneficiary.
Not making an estate plan at all. Remember, everyone can use an estate plan. These important documents can help lift some burdens from surviving family members during a difficult time of grief. It’s up to you to take control of the legacy you hope to leave.
If you don’t have an estate plan yet, the good news is that it’s easy to create one. If you’re a Lake Trust member, you have access to Lake Trust Legacy by Legal Karma, a new estate-planning product. Make a plan for your estate by creating a will or trust online right from the comfort of home. You can choose an estate planning package that works for your budget and situation or get assistance from one of the trusted experts at Legal Karma.
After you access Lake Trust Legacy, you’ll be guided through a simple questionnaire. Your estate documents will then be sent to you for review within three to five business days. Download and print your documents at home and bring them to any Lake Trust relationship center to get notarized for free. That’s it!
A will defines how the assets in your estate will be distributed upon your death.1 So, this document is only used after you pass. In your will, you can also name guardians for your children, dependents, and pets. You’ll also appoint a person to handle your final affairs as a Personal Representative.
A trust allows you to distribute assets while you’re still alive and after you die (depending on the structure of the trust).1 It can be used to control the access and transfer of property. The document also provides guidance and direction for how and to whom your assets and personal property will be held or distributed.
If you use Lake Trust Legacy, you can find support from the experts at Legal Karma if you need help deciding if a will or trust is better for your situation.
Find peace of mind and don’t wait to plan your estate. Create your customized estate plan with Lake Trust Legacy and enjoy special pricing just for being a Lake Trust member. The online process is quick and easy and the experts at Legal Karma are available if you have any questions along the way.
If you have other questions about estate planning or need help appointing or reviewing a durable power of attorney (POA), our Lake Trust Financial Life Planning team is here to help. Contact the team today.
Everyone should have the opportunity to leave a legacy.
1Jarrell, M. (2024, May 13). Will vs. Trust: Which Is Right For You? Retrieved from https://www.investopedia.com/articles/personal-finance/051315/will-vs-trust-difference-between-two.asp#toc-will-vs-trust-key-differences
Lake Trust Credit Union is not a law firm nor are we attorneys. We do not provide legal, tax, or financial advice. Lake Trust Credit Union is not a substitute for an attorney, or accountant, nor law firm. We do not provide legal advice nor legal services. We are providing access to Legal Karma and Legal Karma services as a benefit for our membership. We do not warrant or guarantee any information, documents or services provided by Legal Karma, or its agents. We disclaim all liability as to losses or harm caused from use of Legal Karma and Legal Karma services. Any information provided is for informational purposes only and is not legal advice. The use of Legal Karma, its Sites and Applications are not intended to create any attorney-client relationship, and your use of the Site and/or Applications does not and will not create an attorney-client relationship. For legal advice in any form, you should consult with a licensed attorney.