Raise your hand if you set a goal to be more organized in 2025. Now keep your hand up if you’ve actually made progress. If your hand just went down, don’t worry, you’re not alone. Studies show many people abandon their resolutions within the first few months of the year. But some goals are too important to set aside, like securing your family’s future.
The best way to prepare is by setting up a will or trust. No matter your age or how established you are, this is an important step in safeguarding your family’s financial future. Setting up a will or trust allows you to specify how your assets will be distributed after your death. This ensures your loved ones receive what you intend and minimizes potential familial conflicts. Without one, state laws dictate how your estate is handled, which may not align with your wishes.
This includes you, new parents of Gen Beta babies (children born 2025-2039). As parents of new generations, it’s more important than ever to confirm you have the right plans in place for their care and well-being in the event of the unexpected. A will or trust is a critical tool to provide this security.
Benefits of a Will
A will is a straightforward document outlining how your assets should be handled after death. Unfortunately, a surprising number of Americans don’t have one. Wills must be signed by you and witnesses, depending on your state’s requirements. Some states also require notarization for added validity.
» Cost-effective: Wills don’t have to be expensive to create. While online tools are available to create a valid will, consulting an attorney can ensure it is comprehensive and effective.
» Choosing an executor: A will allows you to name an executor to oversee the distribution of your assets and carry out your wishes. Informing the executor ahead of time is essential so they understand their responsibilities.
» Guardianship: Parents can name a guardian for children younger than 18 in their will, ensuring their kids are cared for by someone they trust.
» Flexibility: Wills can and should be updated after significant life events such as marriage, divorce or the birth of a child.
Benefits of a Trust
Trusts are more complex but offer greater control and benefits, such as managing assets during one’s lifetime and potentially avoiding probate court altogether, depending on the trust’s structure.
» Probate avoidance: While a will must go through probate — a potentially lengthy and costly legal process — a properly structured trust can bypass probate, allowing beneficiaries quicker access to assets. This can be especially important for families who may need immediate financial support after a loved one’s passing.
» Customization: They can include specific conditions for distributing assets, such as providing for a beneficiary’s future education or allocating funds in increments to prevent financial mismanagement. Trusts are particularly useful for beneficiaries who are minors or individuals with disabilities, ensuring their needs are met without granting them complete control over the assets.
» Protects vulnerable beneficiaries: Trusts can restrict how and when funds are accessed. This is crucial for ensuring that minors, individuals with disabilities or even beneficiaries with poor financial habits are provided for without risking the depletion of their inheritance.
Benefits of Both
» Control of asset distribution: A will or trust gives you control over who receives your assets and how they are distributed. Without these documents, Arkansas laws will determine asset distribution based on predetermined formulas, which might not reflect your intentions. For instance, without a clear plan, unmarried partners, stepchildren or close friends might be excluded entirely.
So which one is right for you?
Most people need at least a will, so that is a good place to start. If you have young children, a will is essential for naming guardians. However, a trust may be the better option if you want more control over your estate or have complex financial goals. Combining both tools can provide comprehensive protection for your family and assets.
It’s never too early to start planning for the future. Whether you’re a new parent or someone looking to get their affairs in order, setting up a will or trust is one of the best ways to protect your loved ones. Don’t let 2025 pass without taking this critical step. Your family’s future depends on it.
SaraCate Moery is a partner at PPGMR Law where she helps families with estate planning, probate and family law.
