Many people in New Mexico put off making any type of estate plan for a variety of reasons. These might include the belief that only older people need a will or a trust. Others might be hesitant to face their own mortality. Still others might simply not understand the various tools available to them. It is important to get educated about these as the fact is that everyone can benefit from some form of estate planning.
As explained by CNN Money, one choice to be made is whether to use a trust or a will. In general, a trust is a virtual place in which assets can be retitled and put into with directions about what should happen to them upon the person's death. Any item in a trust will not be subject to probate but will be able to flow to the intended recipient when the time comes.
Wills may also address asset allocation but have even broader powers. One of these powers includes the ability to identify who will assume guardianship of any minor children should the parents die prematurely. This makes having a will of high importance for any parent of a child under the age of 18. Wills may be ideal complements to trusts as each address unique matters.
According to SmartAsset, there is not just one type of trust. Some trusts are designed to help people provide for their grandchildren or subsequent generations. Others are intended to alleviate or reduce tax liability for an estate or beneficiary. Finding the right trust for a situation is important.