Wills and living trusts
It is recommended that all adults create either a will or a living trust. Both documents leave instructions about how you would like your assets—money and possessions—to be distributed upon your passing. A trust also authorizes someone else to manage your finances while you are still alive but incapable of doing so yourself. (Consider, for instance, if you get dementia. A trust allows you to name someone to act in your stead. Without this, your family may not be able to access funding for your care.)
Preparing these documents gives you peace of mind and makes life easier for your heirs. Otherwise, the government will follow its laws for distribution, which may not match what your desires would have been.
Laws regarding inheritance vary by state and are fairly complicated. It's best to work with an estate-planning attorney. They understand the nuances and can advise you regarding the best way to accomplish your goals.
Two main documents are used to distribute assets: A will or a living trust. There are pros and cons to each. Below is a basic overview. Again, it is best to consult an estate-planning attorney to see which one is the best fit for your situation.
Note: A "living trust" is a financial document. A "living will" is a document concerning your wishes about end-of-life healthcare.
Just to be sure all bases are covered, an estate-planning attorney will often create both a will and a living trust, because some assets are best distributed through a will and others through a trust.
Do you have questions about finances and eldercare?
Contact the experts in aging:
LionHeart Eldercare & Consulting 703-677-8319
As an attorney, I agree. I often see people dealing with situations where there are no such documents. It is a mess for the family and add stress to an already stressful time.