The phrase everyone hopes to never hear from their doctor’s office is “settle your affairs”. It is understandably one of the hardest statements for anyone to digest. While it’s a phrase we hope you only hear in the movies, it can be wise to be prepared for the worst especially in old age. What does it mean to settle one’s affairs anyway?
Settling one’s affairs means to decide what will happen to one’s belongings after death. Affairs often also involve outstanding business or financial responsibilities which can’t be tended to after death. Personal property to be distributed is usually established by making a legal document called a will or trust. A will or trust may also include any wishes one has at their time of death.
So what’s the difference between a will and a trust? One main difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as you create it. A will is a document that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. By contrast, a trust can be used to begin distributing property before, at, or after death. To ensure the legal distribution of personal belongings, wills and trusts are often reviewed with the presence of a lawyer.
Standard wills often require an attorney, court-appointed guardians or conservators, 1-2 year probate process, higher estate taxes, and public disclosure of assets. A standard will without a living trust can be unnecessarily expensive and time consuming. In addition, your assets, debts, and heirs will be publicly disclosed. Living trusts, on the other hand do not require an attorney, guardian or conservator to be present. Trusts ensure that heirs receive their entitlements without delays, unnecessary taxes, or other expenses.
Need help settling affairs? The process can understandably be a daunting task for anyone. WellPath Partners has the expertise, resources, and financial services to help you or an aging loved one settle affairs responsibly and stress-free. Visit our website or contact us today to learn more about planning the future for yourself and your family!
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By Prithvi Chauhan
