Creating an estate plan takes a lot of work because you have to ensure that you have everything set for your loved ones when you pass away. While you might be focused on the will that you need to create, there are other things to think about.
When some people hear about trusts, they may think that those are only for the wealthy. This isn’t the case. There is one type of trust, a Totten trust, that is something that can help anyone who has a financial account.
How do you establish a Totten trust?
A Totten trust is easy to establish. You simply have to fill out the paperwork for the payable on death designation. This tells the financial institution where you have checkings, savings or other accounts what to do with the account when you pass away. Whoever you name on this document will be the person who gets access to the account after you die, but they won’t be able to access it before you die.
What else should you know?
One of the most important things to remember is that you shouldn’t include the account that’s associated with the Totten trust in your estate plan. If the estate plan and Totten trust are different, it can cause problems with the estate when you pass away.
Making sure that you have everything taken care of for your loved ones is imperative. Setting up the estate plan now can make this process a bit easier. It can also give you peace of mind, and you’ll have a chance to discuss these matters with your beneficiaries so they know what to expect when you pass away.