Giving Thanks for Smart Planning: Legacy & the Law Isn’t Just for the Rich or Old

‍

When we gather around the table in November, gratitude is often at the forefront of our minds—family, health, and the opportunities we’ve been given. It’s also a perfect time to reflect on the legacy we’re creating and how to protect it. Estate planning isn’t just for the wealthy or the elderly—it’s about ensuring your loved ones are cared for and your wishes are honored.

‍

Wills and Trusts: Different Tools, Different Purposes

‍

Both wills and trusts are essential estate planning tools, but they serve different roles.

‍

• Will – Think of this as a legal roadmap for how your estate will be divided. A will includes:
  • Testator (the person making the will)
  • Executor (the person carrying out your wishes)
  • Beneficiaries (those receiving assets)
  A will can also provide for guardianship of minor children. However, it’s important to know that a will is subject to probate. Probate is public, can be time-consuming, and may add unnecessary costs.

‍

• Trust – A trust is more like a secure storage box where assets are held for beneficiaries. Key players are:
  • Grantor/Settlor (the person creating the trust)
  • Trustee (the person managing the trust)
  • Beneficiaries (those receiving the benefits)
  Unlike a will, a trust is private, avoids probate, and can minimize taxes. Trusts can be revocable/living (you can change them during your lifetime) or irrevocable (generally permanent but with specific tax advantages).

‍

Which Is Right for You?

‍

• If you have minor children, own a home, or have specific wishes for how your estate should be distributed, a trust is often the best choice.
• If your estate is over $4 million, you may want to consider an irrevocable trust for certain assets to help with tax planning.
• If you don’t own real estate and your primary and contingent beneficiaries are over 18, simply naming them as “payable on death” (POD) beneficiaries on your accounts may be sufficient.

‍

Power of Attorney: Protecting Your Choices

‍

Estate planning isn’t just about what happens after you pass away—it’s also about ensuring your needs are met if you become unable to make decisions. That’s where powers of attorney come in.

‍

• Financial Power of Attorney – This document allows you to appoint someone to manage your finances and property. It can take effect immediately or only if you become incapacitated. Your appointed agent can pay bills, make deposits or withdrawals, and manage assets if you’re injured, ill, or otherwise unable to handle your affairs.
• Healthcare Power of Attorney – This gives someone you trust the legal authority to make medical decisions on your behalf if you can’t. From treatment options and medications to surgeries and even end-of-life care, this document ensures your healthcare choices are respected when you’re unable to speak for yourself.

‍

The True Gift of Planning

‍

This holiday season, give your loved ones peace of mind. Estate planning isn’t about wealth—it’s about clarity, protection, and love. By creating the right documents—wills, trusts, and powers of attorney—you’re not just protecting your assets, you’re lifting a burden from the people who matter most.

‍

The best time to plan is now. Consider it one more way to say “thank you” to your family by making sure they’re supported, no matter what the future holds.

‍