Estate planning often seems like an overwhelming project that requires you to consider future possibilities and ways to ensure that your affairs are in order in the event of your passing. As difficult as it might be, deciding in advance how your estate should be divided after you’re gone is the only way to ensure your wishes are carried out. Below are answers to some questions you might have about estate planning.

A Guide to Common Questions About Estate Planning

What is probate?

Probate is the legal process of dissolving your estate and retitling assets in the names of your beneficiaries. During probate, your executor will settle your outstanding debts, do a complete inventory of your assets, and settle any legal challenges that may arise. Bear in mind that if you own property titled in several states, your estate will likely have to go through probate in each jurisdiction unless you’ve established a trust.

Do I need estate planning if I’ve verbally expressed my wishes?

No matter how many times you’ve told your loved ones how your assets should be divided after you’re gone, an estate plan is the only way to make those intentions legally enforceable. In fact, if you pass away without an estate plan, your estate will be divided according to state law. When this happens, the ones you trust the most may not have the legal authority to follow your instructions, even if they want to.

Why should I write a will?

Preparing a will allows you to decide who should receive your belongings after you’re gone. This includes valuables like real estate, jewelry, and collectibles, as well as items of sentimental value you’d like to pass on.

Your will also allows you to nominate an executor, who is the person empowered to actually carry out your instructions. You may also name a guardian to take care of your children if something happens to you and your spouse.

What is a trust?

Trusts are separate legal entities that take ownership of your assets, which a trustee administers for your benefit. When you pass away, the assets held in trust can be distributed according to your instructions, or a new beneficiary can take your place.

Because the assets held in a trust don’t technically belong to you, they don’t have to go through probate. If you want your beneficiaries to receive their inheritances as quickly as possible, your estate planning professional may recommend setting up a trust.

Estate planning can be confusing, but the legal team at Wills and Trusts Hawaii is here to help. They pride themselves on helping clients across Oahu protect themselves and their loved ones from the unexpected with detailed legal advice and personalized solutions. Visit their website to learn more about their reputation and services, or call (808) 792-8777 to make an appointment today.