A lot of my clients either are starting to have children, or are thinking about having children. As you might expect, this means that I am fielding a lot of questions about wills and trusts. These conversations inevitably start with wills, because this is the estate planning instrument that most people are familiar with (e.g. “if you don’t attend University of Iowa, I am removing you from my will”). However, wills are just one component of a healthy estate plan-and not even the most important component.In following articles, I will explain in detail the different components of a proper estate plan.
In this article, I will first explain the importance of having an estate plan. I will then briefly explain why I recommend a Revocable Living Trust as the primary instrument for most estate plans, as opposed to a will. Your estate plan is an investment. A proper estate plan will ensure:
- that your assets are allocated according to your desires;
- that your heirs (and/or spouse) will have immediate access to the assets you leave for them (as opposed to having to wait as long as a year for the resolution of probate on your estate);
- that a large portion of your estate will not be expended on probate attorney fees;
- that your assets will avoid both federal and state estate taxes to the greatest…
