Wills and trusts are useful devices for managing your wealth and assets and keeping your hard-earned possessions within the family or perhaps placing them in the appropriate and able hands. A will, for instance, allows you to declare to whom you want your assets to go. Dying without a written will means leaving the distribution of your assets in the hands of the state, who then gets to decide who gets what according to the laws of intestacy, regardless of your wishes or the actual needs of your heirs.
Writing a will is something you should definitely think about, especially when you are raising young children. A will is your best means of ensuring your kids are taken care of should your life end unexpectedly, because they allow you to transfer guardianship to people whom you can trust to look after their wellbeing. The best thing about wills and trusts is that they can be amended anytime you wish to make changes to your previous arrangements. In fact, it is advised that you update your will periodically so that it reflects your best interests at any point in your life. This is especially significant when changing your marital status.
Laws governing estate distribution are known as intestacy laws. Generally speaking, a person survived by a spouse and children leaves their assets to be split between their partner and children in the absence of wills and trusts. The assets of a single person without any children, on the other hand, would be split between the blood relatives of the deceased.
Wills and trusts go hand in hand. A will stipulates your wishes as to how your assets should be managed when you’re gone, and a trust is another legal mechanism that specifies conditions on the distribution of your assets.
