Estate Planning Made Easy: A Step-by-Step Guide On How To Make Wills and Trusts

Estate planning. It sounds formal, maybe even a little daunting. But at its heart, it's simply about taking care of the people and things you cherish. It's about ensuring your wishes are honored and providing peace of mind for yourself and your loved ones. And while the process might seem complex, it doesn't have to be. Let's break down how to make a will or trust in a clear, step-by-step way.

Understanding Your Options: Will or Trust?

Before diving into the "how," it's helpful to understand the "what." A will is a document that outlines how you want your assets distributed after your death. It also allows you to name an executor to manage your estate. A trust, specifically a living trust, is a legal arrangement where you transfer assets into the trust during your lifetime. A trustee (often yourself initially) manages these assets for the benefit of your beneficiaries.

The key difference? A will goes through probate, a court-supervised process, while a living trust can avoid probate, offering a more private and often faster transfer of assets. The best choice depends on your individual circumstances, which we'll touch on later.

Step 1: Assess Your Needs

The first step is to take stock of your situation. Ask yourself:

• What are my assets? This includes everything from your home and car to bank accounts, investments, and even digital assets.
• Who are my beneficiaries? Who do you want to inherit your assets?
• Do I have minor children? If so, you'll need to name a guardian in your will.
• Is my estate complex? Do you have significant assets, business holdings, or complex family dynamics?

Step 2: Gather Your Information

Once you have a good understanding of your needs, it's time to gather the necessary information. This includes:

• A list of your assets and their approximate value.
• The full names, addresses, and dates of birth of your beneficiaries.
• The name and contact information of your chosen executor (for a will) or trustee (for a trust).
• Any specific wishes you have regarding the distribution of your assets.

Step 3: Choose Your Approach

Now, you have two main paths to choose from:

• The Convenient Approach: Online Services (like Ethos Estate Planning)\ \ For many, online services offer a convenient and affordable solution. Platforms like Ethos Estate Planning provide a guided process and attorney vetted templates, making it easy to create a will or trust from the comfort of your own home.\ Pros:

  • User-friendly and intuitive
  • Cost-effective
  • Convenient and time-saving
  • Includes state-specific templates for wills and trusts that have been vetted by attorneys

  Cons:

  • May not be suitable for complex estates

• The Traditional Approach: Working with an Attorney\ \ If you have a complex estate, significant assets, or unique circumstances, a standard will or trust form or online service may not be the best option. Instead, working with an attorney would be advisable. They can provide personalized advice, address complex legal issues, and ensure your documents are tailored to your more complex and specific needs.\ \ Pros: 

  • Personalized guidance and expertise 
  • Suitable for complex estates
  • Ensures all legal requirements are met

  Cons:

  • Typically more expensive than online services
  • Can be more time-consuming

Step 4: Draft Your Documents

Whether you choose an online service or an attorney, the next step is to actually create your will or trust documents.

• Using an Online Service: Follow the platform's guided process, answering questions and providing the necessary information. The platform will then generate customized documents based on your input.
• Working with an Attorney: Your attorney will draft the documents based on your discussions and instructions.

Step 5: Review and Finalize

Carefully review your documents to ensure they accurately reflect your wishes. If you're using an online service, take advantage of any review tools or customer support they offer. If you're working with an attorney, discuss any questions or concerns you have.

Step 6: Sign and Execute

To formally execute your will or trust, you must sign it in accordance with your state's laws. This typically involves signing the document in the presence of witnesses and, in some cases, having it notarized. For Trusts, you will need to go through the trust funding process. Your online service or attorney will provide specific instructions.

Step 7: Store Your Documents Safely

Store your signed will or trust in a safe and accessible location. Consider keeping a copy at home and another copy with a trusted friend or family member. Let your executor or trustee know where the original documents are located.

Choosing the Right Path for You

You don’t need ‘Estate Planning for Dummies’ to get started on making plans for your future. Ultimately, the best approach for creating a will or trust depends on your individual circumstances. If you have a straightforward estate and value convenience and affordability, an online service like Ethos Estate Planning can be an excellent choice. If your estate is complex or you prefer face to face guidance, working with an attorney is often the best option.

No matter which path you choose, taking the time to create a will or trust is one of the most important things you can do to protect your loved ones and ensure your wishes are honored. It's an act of love and responsibility that will provide peace of mind for years to come.

Disclaimer: This information is for general guidance and does not constitute legal, tax, or financial advice. Consult with qualified professionals to address your specific needs.