About 50% of Americans leave their assets and properties in confused hands after their passing because of their lack of an estate plan. Most 40-50 year olds believe it to be a morbid or even a cursed thing to do, but truthfully, estate planning is essential to avoid confusion upon death and a streamlined approach to making sure your assets are properly distributed. So here are five things you need to remember.
Revocable Living Trust
A revocable living trust allows your heirs to receive their inheritance when they achieve the conditions placed by the estate planner. Most of these revocable living trusts evenly spread out the distributions of inheritance even for young adults.
Full funding ensures that your trust remains private and the trust doesn’t have to go to court to settle the distribution of assets to your children and inheritors. When you fully fund your trust, your matters are kept quiet simply because the entire situation is discussed through closed doors.
Naming an adult or a trustee for your young children is important. The guardian would be responsible for handing over your inheritance to your children once they fulfil your conditions.
Never Too Young
No one is ever too young to create a will and trust. When your assets grow, the more you should consider creating your own will and trust as soon as you can. This will help avoid confusion upon your passing.
As you are young, situations change, and you’ll have the chance to regularly update your will and estate plans to match the current situation of your inheritors, or even yourself.