Once you reach your 30s, it's safe to assume that you have a better idea of what you want to accomplish in the future. By now, you may even own a home and have a child (or several children).
With all this in mind, it's important to create an estate plan that can give you peace of mind. You don't expect anything bad to happen to you, but you never know what the future will bring. For this reason, it's better to be safe than sorry.
Many people in their 30s are under the impression that a will is the only type of estate planning document that makes sense. However, once they learn more about the benefits of a trust, they begin to sing a different tune.
Although there are many advantages of a trust over a will - including the ability for your assets to avoid probate upon your death - you can't make this decision until you do one thing: Learn more about the many types of trusts.
Generally speaking, there are two basic types: revocable and irrevocable.
With a revocable trust, you can alter or modify the arrangement as often as you would like.
There are many reasons to consider this type, including probate avoidance. As long as the assets are owned by the trust at your death, not you on a personal level, they are not subject to the probate process. This will save your loved ones a lot of time, money, and stress.
An irrevocable trust is different from a revocable trust in one key way: It cannot be altered or modified after its creation. Once your property makes its way into this type of trust, it cannot be taken out for any reason.
Along with these two basic types of tr usts, there are others that are more specific: asset protection trust, charitable trust, constructive trust, and special needs trust.
As an individual in your 30s, it's time to turn your attention to the future. You have many years ahead of you, but that doesn't mean you should put estate planning on the backburner. Instead, now's the time to make key decisions that will benefit you and your family, both now and in the future.