Today, we’re going to talk about planning for your passing in the form of a will or
a trust, something that many people haven’t done. The truth is that it’s not
something that’s necessary for everyone – but if it is necessary, you need to set
aside a bit of time to get it done.

First of all, determine whether or not you need such a thing at all. I
usually ask two questions: do you have any dependents besides yourself? and do
you have any relatives or friends that you wish to have your things or money
when you pass on? If you answer yes to either question, then it’s time to get
legally binding plans set in place. If you answer no to both (many young people
will, in fact), then don’t get one, as intestate (the state’s default method for
handling your leftover assets) will take care of things for you.

If you do need to make a plan, though, don’t go cheap and get a kit – contact
a lawyer and do it right. Ask around for references to one who can handle
your will or trust preparation easily and clearly and can make sure that it is in
fact legally binding in your locality. The fee for this is usually not too high, but
knowing that the document is properly prepared makes it worth all of the effort.

There are a few basic things you should know before you go, though:

First, a will is the actual document that lists what you wish to happen to your
estate upon your passing. There is one big drawback to a will: in most
jurisdictions, for a will to be legally executed, it must go through a legal process
known as probate to ensure that the statements in the will are actually carried
out, which can be expensive.

Thus, some people choose to set up a trust (often called a revocable living trust),
a legal entity to which a person can assign all of their assets while they are alive.
This trust is legally bound to follow the rules of the trust, which usually kick in
when the person who set up the trust passes on. Since these assets are owned by
the trust and not by the person, they’re often not subject to probate. The only
drawback is that it can be expensive.

Again, to make sure that everything goes right, ask for appropriate legal
advice to ensure that you know what you’re doing and the document
is in fact legally binding. For me, it was the best money I ever spent.

Spend an hour piecing together what your wishes are for your estate,
then contact a lawyer. Knowing that things are taken care of when you enter
the afterlife is a huge relief to many people.