Trust Planning
Provided by the Administration on Aging
Planning for your financial future includes making difficult decisions about your finances and care. Preparation for the distribution of your estate when you die will save your loved ones an additional burden. Prior planning in the event that you become ill and are unable to make decisions for yourself will also protect your loved ones from having to make them, possibly without knowing or considering your intentions.
Wills
The most common part of estate planning involves the preparation of a will. A will is a legal document that instructs what is to be done with a person's money and property when he or she dies. Without a will, how to divide your property and money will be decided by the state in which you lived. See the websites listed below for more information.
Resource Links
An Introduction to Wills
American Bar Association Network
Includes what happens if you die without a will, what wills do and do not do, and how to execute them.
FAQs About Wills
AARP
General questions and answers
Making a Will
Life Advice, GSA
General information
Living Trusts
One option that you have when estate planning is to create a living trust. A living trust, also known as a revocable trust, inter vivos trust, a family trust, and a grantor trust, is an arrangement you create while living to transfer your assets to a trust. You can act as your own trustee or select someone else.
According to the American Bar Association, a living trust, like a will, can provide for the distribution of property upon your death. Unlike a will, it can also provide you with a way of managing your property during your life, and authorize the trustee to manage the property and use it for your benefit and that of your family if you should become incapacitated.
Reasons for creating a living trust include that it can help avoid probate, reduce estate taxes, or set up long-term property management. Use the resources mentioned below for more information.
Resource Links
Living Trusts: Arranging How You Want Your Property Managed Before and After Your Death
AARP
Resources, tips, and more
Living Trust Offers: How to Make Sure They're Trustworthy Federal Trade Commission
General advice on estate planning and living trusts
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