Every adult needs to have an estate plan before they pass away. This gives your loved ones instructions about your assets so they can follow your wishes. While most people think that a will is all they need, there are other components that are just as important.
One thing that you consider is setting up Totten trusts. These are very simple financial tools that you can set up through your bank. They’re informally known as payable on death designations. This outlines who get the funds in a bank account if you pass away.
How do you set up a Totten Trust?
In order to get a Totten trust set up, you simply fill out the form at your financial institution. This lets the bank know who to hand the account over if you pass away. The person you name can only access the funds after you die, so you don’t have to worry about them being given any access to the account before then.
When you set up the payable on death designation for an account, you shouldn’t put that account in the estate plan. If you ever change the beneficiary on the financial institution’s documents or on the estate plan without changing it on the other one, there could be a problem during the administration of your estate.
Estate planning for most individuals is multi-faceted. There are many things that you have to consider. Because there are so many laws that apply to estate plans, it’s best to work with someone who’s familiar with them. Getting everything set up as quickly as possible can help you to feel a bit more at peace, knowing that your loved ones have a secure future.