You’ve worked hard to build a meaningful life. Estate planning ensures everything you’ve built is protected and your assets are smoothly managed and distributed. This provides peace of mind that your loved ones will be taken care of and your legacy will be preserved.
It’s easy to put off estate planning because of how busy life can be. But setting aside some time now can make all the difference later. Whether you’re just getting started or need to update an existing plan, it is important to make informed decisions.
Why Estate Planning Matters
According to the National Council on Aging, estate planning is more than just writing a will. It’s a process that clearly outlines how you want your affairs handled — after you pass or in the event you become incapacitated.
Without a proper estate plan, your assets could be distributed based on state laws, which might not align with your preferences. A detailed estate planning can also help minimize taxes, avoid probate and ensure your family is protected during difficult times.
At its core, this involves organizing your personal, financial and medical wishes through a set of legal documents. These typically include wills, living wills, trusts and power of attorneys. You can be as detailed as you want with these documents. Some people even include a letter of instruction to walk their family members through the details of their plan.
Key Documents in Estate Planning
Wills
A last will and testament, commonly known as a will, is a legal document that specifies how your assets should be distributed after your death. It also names an executor who will carry out your wishes.
If you die without a will, the state will decide how to distribute your assets. While all estates go through probate, having a will in place can help simplify and streamline the process. This can save time, money and stress for your loved ones.
Trusts
A trust is a legal arrangement that allows a trustee (an individual or institution) to hold and manage property for your chosen beneficiaries.
You can place money, property, investments and other items of value in a trust. Unlike a will, assets in a trust generally avoid the probate process, allowing for faster and more private distribution. Trusts are especially useful for managing property intended for minors, with conditions that can delay access until a beneficiary reaches a certain age.
There are also different types of trusts to consider. A living trust (also called an inter vivos trust) goes into effect while you’re still living. A testamentary trust is created through your will and takes effect only after your death.
How VyStar Can Help with Estate Planning
Getting started with estate planning is easier than you might think. Here are five easy steps:
1. Take inventory of your assets
Make a list of everything you own, including:
Cash
Vehicles
Real estate
Clothing
Jewelry
Investments
Savings
Retirement accounts
Land
Other personal property
Once you have a clear picture of your assets, you can start putting a plan in place.
2. Identify Your Goals and Beneficiaries
Decide who you want to inherit your assets and how those assets should be distributed. Also, consider who you trust to make decisions on your behalf if you're unable to do so.
3. Choose the Right Estate Planning Tools
Determine whether a will, a trust or a combination of both works best for your needs. If you’re unsure, you can explore your options with guidance from our estate planning partner, Trust & Will.
4. Create or Update Your Documents
Use a trusted online platform — or consult a legal professional — to draft or update your will, trust or other planning documents.
5. Review and Update Regularly
Revisit your estate plan every few years — or when you experience major life changes like marriage, the birth of a child or retirement.
Ready to take the first step? Visit VyStar’s Estate Planning with Trust & Will page. You can save 20% on any estate plan for being a VyStar Credit Union member.