Estate planning is an essential piece of getting your affairs in order. But there are options even in this step.

I never thought much about estate planning until my Mother died. My Father was left to figure out where all his assets were and how much money he had, because my Mom managed the finances in their marriage. In helping my dad get his affairs in order, I got my own affairs in order as well. His attorney recommended a Revocable Trust rather than a Living Will. So, what’s the difference?

Estate Planning Basics

An estate consists of all the property and financial resources you own or are in the process of buying such as a house, cars, business property, rental property, retirement accounts, checking accounts, savings accounts, IRA’s and 401k’s, life insurance, and so forth. What you own is an asset, what you still owe money on is a liability.

Estate Planning is creating a plan that states what you want to be done with these assets and liabilities while you are sick and then eventually die. The Executor of your Estate will follow your wishes as outlined in a Living Will upon your death. The Successor Trustee will follow your wishes in the event that you are sick and unable to manage the day to day responsibilities of your estate and will also follow your wishes as outlined in a Revocable Trust upon your death.

Revocable Trust vs. Living Will?

Choosing between a Revocable Trust or Living Will to finalize your estate planning is to ensure your assets go to those you want to receive them. You may think you don’t have much to give away to your family or children, but you will be surprised when you take the time to look at all you have accomplished so far in your life and how much it is worth, including sentimental value to your loved ones. Also, it gives your family peace of mind and a roadmap to accomplishing your wishes.