What is the difference between a will and a living trust?

A will is a legal document that dictates how your assets are distributed after your death and goes through probate. A living trust is a legal entity that holds your assets during your lifetime, allowing them to be distributed to beneficiaries after your death without going through probate.

How much does estate planning cost?

The cost of estate planning varies widely based on complexity and location. A basic will package might cost $500-$1,500, while a comprehensive plan including a living trust can range from $2,000 to $6,000 or more. The investment often saves significantly more in future probate costs and taxes.

Do I need an estate plan if I don't have many assets?

Yes, everyone needs an estate plan, regardless of asset value. Even a modest estate benefits from a will to designate guardians for minor children and ensure assets go to intended beneficiaries, avoiding state default rules and potential family disputes.

What happens if I die without a will?

If you die without a will (intestate), state laws will determine how your assets are distributed, who cares for your minor children, and who manages your estate. This process, called intestate succession, often does not align with your wishes and can lead to lengthy and costly court proceedings.

How often should I update my estate plan?

You should review your estate plan every 3-5 years or immediately after any significant life event. These events include marriage, divorce, birth of a child, death of a beneficiary, major changes in assets, or relocation to a new state.

Can I create my own estate plan using online services?

While online services offer templates for basic documents, they may not be suitable for complex situations, large estates, or specific family needs. Consulting an estate planning attorney is highly recommended to ensure your plan is legally sound, properly executed, and tailored to your unique circumstances.

What are digital assets and why are they important for estate planning?

Digital assets include online accounts (social media, email), cryptocurrency, digital photos, and intellectual property. It's crucial to include them in your estate plan by providing an inventory, instructions for management or deletion, and authorizing fiduciaries to access them, often through a letter of instruction or specific legal provisions.

Estate Planning Guide: Protect Your Legacy | One Percent…