Estate planning involves deciding who will inherit your assets and property when you pass away. You can also use estate and trust mediation to hand over the power to someone your trust to handle your affairs if you become incapacitated. Making a will and estate planning are not the same things; however, creating a legal will is an integral part of planning your estate. Here are some important things to know about planning your estate as a Delaware resident.
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When it comes to estate planning, you’ll need to sign several documents, including several types of trusts and a will. Each of these documents serves different purposes. Wills and trusts offer limited power since a will and trusts don’t do the same things. It’s important to know the difference between these documents to create a clear plan for your estate.
The purpose of wills
Both wills and trusts are used in estate and trust mediation to determine how your assets are divided when you pass away. Both of these documents also dictate which people will carry out the purposes outlined in the document.
A will is used to specify who will be entitled to your assets and property. Personal representatives and executors are named in wills as well. Your personal property, real estate, and family heirlooms are protected by your will. The will also allows you to name a guardian for minor children. The will is not in effect until you pass away.
The purpose of trusts
A trust is created to manage and hold your assets and other major life decisions. Once you give the legal title of the trust property to the trust, a person of your choice can be named trustee. At that point, the trustee is responsible for safeguarding, managing, and investing trust income and property on the behalf of the beneficiaries you named.