How to Execute the Proper Estate Planning Documents?
Execute the Proper Estate Planning Documents: A properly executed Will or Trust will allow you to state how you would like your assets to be transferred — and who will receive these assets — at your death. A Will or a Trust also lets you identify who will take charge of the assets and manage their disbursement (including your business accounts) according to your wishes.
Although a Will can be used to pass assets at death, creating and properly funding a Trust allows any assets owned by the Trust to bypass the probate process making distribution of assets to heirs much faster, private, and may reduce the legal fees and estate taxes your heirs will owe.
Additionally, a Trust can help your loved ones manage your Trust assets if you become incapacitated. While you are alive and well, you typically act as the Trustee of the Trust, so you can manage your business and assets with little change from the way you do now. But unlike a Will, a Trust allows your Successor Trustee to step in manage things if you become incapacitated.
This process avoids court involvement, allows for a smooth transition of Trust management (which can be very important if your business is an asset of your Trust), and proper continuing care for you in your time of need. Although having a Will can be a great way to start, most business owners are much better off with a Trust-based estate plan.