When you plan your estate, there are two kinds of trusts you can choose. One is a revocable trust, and the other is an irrevocable trust. The differences between these may seem fairly obvious, with one being able to be changed at any time and the other not able to be altered. However, there are some other differences to know.
Most people plan on being able to manage their affairs, but sometimes unforeseen circumstances arise and people are no longer able to reasonably make important decisions about their best interests. Sometimes it is the result of a mental illness, other times it may just be the result of aging, but how should these situations be legally handled?
When you're growing older, it's a good idea to make sure you update your will. You may think you have time to put it off, but you never should wait. If you wait, you may pass away or be caught off guard by an illness that makes it impossible for you to finalize your will.
Wills are very important to the estate plan equation, and yet few people actually want to construct their will. And fewer still want to deal with their will once it is complete. There are some simple reasons for these feelings that many people share. Wills can be tricky to fully complete. They also deal with an inherently unsavory topic: our own death. It can also be tough to wrestle with the idea of giving certain people assets while others don't receive as much.
As we age, preserving the future of our assets becomes more of an immediate need. It can be difficult to establish an estate plan that will protect your home and other property while still allowing you to plan for your future and maintain some level of financial independence. In many cases, it becomes a decision between two documents: life estates vs. irrevocable trusts.