Jason discusses the importance of preparing adequately before meeting an attorney to set an estate plan. He emphasizes understanding what assets one possesses and determining beneficiaries. Jason also delves into the distinctions between probate and non-probate assets, highlighting IRAs, 401Ks, and life insurances as examples of accounts that pass with a death certificate. Additional consideration goes to assets without beneficiaries, which require a will or a trust to designate distribution.
Furthermore, Jason explains the difference between wills and trusts. While a will directs probate court on asset distribution, a trust, being a legal entity, bypasses probate court by owning the assets outright on behalf of the beneficiaries. Trusts could be more feasible in situations requiring privacy or when dealing with minor children. Additionally, the flexibility of trusts might benefit blended families or complex inheritance scenarios.
Jason also outlines instances where a trust might be unnecessary, such as when all assets have designated beneficiaries that align with the individual’s wishes, making a will a simpler and more cost-effective safety net. He warns against simply naming children on assets as beneficiaries without consideration, especially when they are minors or financially irresponsible.
Finally, Jason touches on the flexibility of changing beneficiaries for assets held in financial institutions, pointing out that such changes are easier and less costly compared to adjusting wills or trusts. He encourages readers to continuously revise their estate plans to adapt to life changes, ensuring that their wishes are consistently reflected.