Experts have reported that about half of American adults have yet to write their will – an alarming statistic, to say the least. Additionally, only one in five millennials ages 18-36 has a will. Death can be an awkward topic for many, but preparing for the unexpected is important, and just two documents can help you and your loved ones have peace of mind. Equally important, a will and a living trust will ensure that your assets and your wishes are protected.
Experts at Desert Schools Federal Credit Union offer their top five reasons why you should prepare those documents sooner rather than later:
1. Control the distribution of assets to beneficiaries
When creating a will, you can appoint an executor of your estate who will handle the distribution of your assets to your designated beneficiaries and arrange for the payment of debts and expenses.
2. Avoid probate
While a will allows for the distribution of your assets upon death, a living trust can help your loved ones avoid probate altogether because the property and assets are already technically distributed through the trust, which is managed by a trustee.
3. Name guardians for minor children
When creating a will, we are able to appoint a guardian. That way if something does happen to you, your child or children are in the hands of people that you trust to care for them.
4. Prepare for incapacity
A will and living revocable trust can both help you prepare for incapacity. These documents will include provisions and instructions on how your family and medical professionals are to proceed in the event of incapacitation.
5. Gain Peace of Mind
When you create these legally binding documents, you can rest assured that after your death your wishes for your estate and family will be followed as closely as possible.
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The information listed may not reflect the capabilities or practices at Desert Schools Federal Credit Union, but is rather meant to serve as a unbiased advisement and support of the financial health of our community.