According to Trust & Will, the total time from beginning the process to clearing probate court for your estate could be over two years. That’s two years when your family can’t access what you left them. That’s why financial expert Suze Orman suggests getting your financial house in order now.
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In as little as 30 minutes, you can set up a will, a revocable trust, a financial power of attorney, and an advanced directive. Paired with a durable power of attorney for health care, you’ll have the systems to ensure your financial and health care decisions are respected and your family is protected.
That’s a lot of peace of mind in a short time, but according to the latest Gallup Poll findings, only 46% of U.S. adults have wills. And only a small percentage of end-of-life plans include trusts.
The Gallup Poll also shows that upper-income Americans are likelier than lower-income Americans to have a will. There’s a significant difference based on education and race, with college graduates and white Americans being more likely than college non-graduates and non-White Americans to have a will.
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Regardless of your education or race, you can take steps today to shield your wealth for your children, whether that’s your home, $1,000, or millions. Here are the documents you need and why you need them:
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A trust is a necessity, even if you don’t consider yourself wealthy. It keeps you 100% in control. You can set up a revocable trust to always make changes later. The trust ensures that your assets pass to your heirs as seamlessly as possible.
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A will ensures all of your possessions are transferred into your trust. This helps to avoid the time-consuming and often expensive probate process, saving your family more. In the will, you will also appoint a guardian for your minor children.
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A financial power of attorney appoints someone you trust to step in and help manage your finances if the need arises. This can be if you’re ill or simply don’t want to deal with financial management in the future. You can give financial power of attorney to anyone you trust, such as an adult child or grandchild.
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An advance directive spells out your medical wishes. Suppose you can’t express what you want. In that case, your advance directive is a legal document that covers your beliefs or request, such as whether you want to be put on life support so that your medical team can respect your wishes, even if you’re not in a position to advocate for yourself.
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A durable power of attorney for health care is a document that appoints someone to speak up and advocate for you. That person becomes your official health care representative to interface with doctors or a medical team and authorizes appropriate care when you cannot be consulted directly.
Then, remember to get the documents notarized if necessary. While that can sound overwhelming, numerous online resources give you templates to organize these documents. Benzinga can help you set up a will and a trust and stay current on the latest estate planning advice.
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This article Suze Orman Explains Why Savvy Families Are Secretly Crafting ‘Living Trusts’ to Shield Wealth from Greedy Probate Courts originally appeared on Benzinga.com
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