The Importance of Estate Planning: A Comprehensive Guide to Wills and Trusts in Grand Rapids, MI

Estate Planning is perhaps one of the most important things you’ll ever do in your life. An estate plan allows you to lay down a solid roadmap that dictates who will inherit your estates or take care of your children after you’ve passed away. These plans can also entail who’ll be in charge of making such decisions on your behalf if, for some reason, you can’t.

It is estimated that nearly 60% of American adults don’t have a living trust, will, or solid estate plan. Needless to say, estate planning is a must if you want to protect the interest of your loved ones long after you’ve bid this world goodbye.

As a law firm specializing in estate planning, wills, and trusts in Grand Rapids, MI, we at the offices of Sean Patrick Cox know just how effective an estate plan can be. This is why we want to use this article to provide a comprehensive guide on the topic and all the other crucial elements that estate planning involves… starting with Wills!

Wills

Wills are nothing but legal documents through which you can put forth your wishes. These wishes mostly pertain to the distribution of assets among heirs and who gets to take care of a minor in the event of your untimely death.

With a legitimate will in place, you can reap the following benefits

• Clearly convey who gets your property and assets after death.
• Protect your wealth from people you don’t want to own.
•  Assign a guardian who’ll take care of your children
•  Make it easier for your heirs to get access to your assets
•  You can save estate money on taxes.

What Happens Without a Will

You expose your heirs to a host of issues if you die without a will. The absence of a will might result in your children wasting their money, time, and energy on settling your affairs. Moreover, important decisions like your children’s care and the distribution of your assets will be in state officials’ hands.

Types of a Will

There are many different types of wills. They are as follows

1. Holographic Wills
2. Mutual Wills
3. Pour-Over Wills
4. Oral Wills
5. Testamentary Will

In our opinion, a written and witnessed will (aka testamentary will) is your best bet.

Steps to Create a Will

If you want to create a will, we suggest you stick to the following steps.

1. Choose an executor
2. Make a record of your assets and property
3. Assign beneficiaries
4. Choose guardians for your children
5. Put your wishes on paper
6. Change your will occasionally as per your needs
7. Stay updated and adhere to your state’s estate laws.

Although you can choose to write your own will, we suggest seeking the assistance of a reputable will and trust attorney to ensure you aren’t making any missteps.

Trust

Trust is a fiduciary arrangement wherein a third party or trustee is responsible for holding assets on behalf of beneficiaries. Trust could entail terms that dictate how and when certain assets will be passed on to designated beneficiaries.

There are many advantages to having a trust. Some of those benefits are

• A substantial trust can protect your estate from an heir’s creditors.
• A trust can permit assets to pass outside probate and remain private.
• A trust can help you save money in court fees and cut estate taxes.

Differences Between a Will and Trust

Both Wills and Trusts are essential aspects of estate planning. These are legal arrangements that can protect one’s assets and direct their disposition after the owner’s death. However, it is important to note that these concepts are very different. A Will, for instance, can come into effect only after the creator’s death. On the other hand, a trust can be used both during the creator’s life and after their death.

Types of Trusts

Now, there are many types of trusts, each serving a specific purpose. They are as follows:

• Revocable Trusts
• Irrevocable Trusts
• Special Needs Trusts
• Charitable Trusts
• Marital Trusts
• Special Purpose Trusts

We suggest you get in touch with the best estate planning attorney in Michigan by calling the offices of Sean Patrick Cox for more in-depth information on each of the above-mentioned trust types.

Steps to Creating a Trust

Follow the below steps (preferably under the guidance of a good estate planning, will, and trust attorney) to successfully create a trust.

1. Choose assets to put in the trust
2. Designate beneficiaries
3. Define the rules of your trust
4. Choose trustee
5. Draft the trust with the help of your estate planning attorney.

Remember, Sean Patrick Cox is just a phone call away from offering assistance on estate planning, wills, and trusts in Grand Rapids, MI.

The Importance of Estate Planning

Estate planning, wills, and trusts are important legal structures that one can use to care for their loved ones even after death. A well-composed estate plan can be used to transfer assets to your rightful heirs upon death. Besides this, there are a plethora of benefits to having an estate plan.

The benefits of estate planning:

• It protects your beneficiaries and their interests
• It can be used to entrust the care of young children to a trusted guardian
• Prevent ugly family disputes
• Save vast amounts of money on estate taxes

If you ask the best Grand Rapids trust estate lawyers at Sean Patrick Cox, they’ll tell you that one shouldn’t wait until old age to prepare an estate plan. As death and disease are unpredictable, we suggest starting with the planning of your estate, will, and trust right away, especially when you are in the best physical and mental state of your life.

Legal Considerations

For a will or trust to be considered valid, it needs to adhere to the following three conditions:

• The creator of the will or trust must be at least 18 years of age or older
•  The will must be in writing. It should be signed by the creator or someone else at the creator’s behest.
•  Two additional witnesses should also sign it
•  The written legal document must be notarized. Alternatively, certain conditions must be met.

Now you may encounter many problems when preparing an estate plan. Issues like poor record keeping, failure to update the plan, omitting crucial documents, or failure to communicate properly with heirs are some hurdles you can expect to face.

You can avoid almost all of these issues by preparing your estate plan as early as possible with the help of a reliable estate planning, or living will trust attorney.

Choosing an Estate Planning Attorney

It is almost impossible for a common citizen to know all the complex elements associated with estate planning. As such, they may end up with grave mistakes that could cost them both time and money. The best way to avoid these problems is by hiring an estate planning attorney specializing in creating and managing wills/trusts.

To choose the right attorney, we suggest researching thoroughly about their background. Ensure the attorneys you choose have a successful track record of preparing estate plans for their clients. Choose attorneys who are privy to the laws and regulations specific to your state.

Also, ask the following questions the first time you call the law firm:

1. Do you charge for a consultation?
2. What are your fees? Do you offer concessions?
3. How quickly will you craft my initial plan?
4. How will you communicate with me on a consistent basis?
5. Will you conduct periodic reviews of the plan?

Conclusion

With an estate plan, you are planning for your life’s inevitable end. Estate planning is very important, yet many put it off until it’s too late. Without an estate plan, you let the courts in your state make important decisions regarding your estate and heirs for you.

Being home to attorneys specializing in estate planning, wills, and trusts in Grand Rapids, MI, we know just how instrumental a good estate plan can be. So old or young, we encourage you to start the process immediately with the help of a good estate planning attorney in Grand Rapids, MI.

Sean Patrick Cox is home to some of the best lawyers specializing in estate planning, wills, and trusts in Grand Rapids, MI. With us by your side, you can guarantee your loved ones a safe and financially secure future long after your death.

Call us now to set up a free initial meeting.