Legacy planning is an issue that affects everyone because they have a chance to leave a mark on the world. You could improve the lives of your family when you give them an inheritance, and you could support your favorite charities. Your choices will impact your family and your community, so it is important to make these decisions carefully.
Trusts
Trusts are a classic estate planning strategy for sheltering your assets. They make the probate process less expensive for your beneficiaries as well. A trust transfers automatically to the beneficiary. It doesn’t need to go through probate as assets in a will do. Irrevocable trusts are usually immune to creditors, giving your assets another layer of protection.
Texas recognizes pet trusts, a specific type of trust that protects money and items set aside for your pet. If you were to allocate money for your pet through a will, the law can’t legally enforce it.
Transfer-on-death accounts
An alternative to trusts is a transfer-on-death account. You can easily assign a beneficiary on some financial accounts to avoid probate. Some properties allow you to choose a beneficiary, creating a transfer-on-death deed.
Digital identities
Your digital identity reflects who you were while you were alive. You might want to put careful thought into what you post online. When writing your estate plan, you may want to consider what to do with your online profiles. Some people want to close their accounts after their death. Another digital aspect to consider is your files. Some files, such as a journal or personal correspondence, may contain information you don’t want others to read. You might consider asking a trusted friend or loved one to delete these for you.
When you’re thinking about your legacy, you may want to look into trusts, transfer-on-death accounts and digital identities. These are some of the most important aspects of leaving behind a legacy.