Michigan residents who are looking to begin the estate-planning process may be a bit overwhelmed by the different documents that they may be able to set up. Many individuals are aware of how a will works and may believe that this document is the most important one. While individuals should not rule out making a will, they may also want to consider other documents and accounts as well, such as a trust.
Trusts and wills have similar purposes, in that they disclose what should happen with certain assets after a person’s passing. However, a trust does not have to follow the same legal processes that a will does when it comes to distributing the assets. Parties named in a trust may be able to more quickly receive what they have been bequeathed due to the process not having to be court supervised.
Trusts can also be helpful in the event that an individual becomes incapacitated. When creating a trust, a trustee must be appointed. This party essentially acts as a manager over the contents of the trust, and therefore, should a person become unable to make sound financial or other decisions on his or her own, the trustee may be in a position to make beneficial decisions on behalf of the incapacitated party.
While a will is definitely a document that individuals should consider setting up, a trust may be something that planners should look into as well. If Michigan residents are uncertain about how they should handle their estate, information on creating such documents in the state may be able to help. People do not want their affairs left up to chance, and creating an estate plan could lead to more peace of mind.
Source: Time, “Why This Estate Planning Tool Beats Just Having a Will“, Kerri Anne Renzulli, Oct. 6, 2014