Financial planning is important in part because everyone has financial goals they want to achieve, whether it’s paying off debt, purchasing a home or investing. However, there is a crucial part of financial planning that is often overlooked - estate planning. Whether your estate is big or small, estate planning allows you to make important decisions about your future to ensure that you and your family are protected and your wishes are known and honored.

Estate plans usually include the following:
  • Plans for who will make decisions if you’re unable to
  • Protections for children, dependents or pets
  • Instructions for who gets what if something happens to you
  • Tools to avoid legal proceedings, like probate
  • Will and trust options for both singles and couples

Now that we’ve established what estate planning is, let’s talk about the difference between a Will and a Trust. A Will is an affordable and straightforward legal document that designates specific things to individuals, including who will receive your assets, who will take care of your kids and/or pets (if any) and who will be the executor of your estate (someone that will carry out your wishes). Wills are great for someone who wants to name guardians for their children and/or pets or someone that doesn’t have complex assets or major estate tax concerns.

Similar to Wills, Trusts allow you to designate rights to individuals, but they can also give you more control over how and when assets are distributed, offer you more privacy (as Wills become public record) and may allow your loved ones to skip probate court. Trusts are ideal for those who own property in multiple states, have children from multiple relationships or have moderate to large assets.

Creating a Will or Trust can seem like a tedious process, and you may be unsure about which estate plan you’ll need. Don’t worry! Most estate planning platforms start with a quick quiz to help figure out which plan is best for you. Once you decide which plan is the perfect fit, you’ll be directed to a guided estate planning template which you can complete on your own time, from the comfort of your own home.

Preparing for your future has never been easier, and as a SDCCU member, you have access to our estate planning services through Legal Karma, including unlimited support to help you through every step of your estate planning journey.

If you’re interested in learning more about estate planning, register for our free Estate Planning Webinar with Legal Karma on Tuesday, June 24 from 12:00 p.m. to 1:00 p.m. SDCCU and a Legal Karma representative will be discussing estate planning and will answer any questions you may have during this interactive webinar. Register online at sdccu.com/fww.

Visit our Financial Knowledge Blog to learn more tips on setting up a solid financial future or join us for Financial Wellness Wednesdays.