Future forward: Exploring wills, trusts and estate planning

Can you believe that data suggests 66 percent of credit union members do not have a will?

Are you one of them?

Are you thinking about planning for your future but not sure where to start?

We’ve got you covered, because Georgia United Credit Union members can enjoy exclusive perks on services for wills and estate planning. In partnership with Trust & Will*, credit union members can take advantage of a 20% discount on any estate plan, just for being a member.

But wait, what exactly is a will? And what is a trust and an estate plan?

We know this kind of planning isn’t easy, but it’s so important – no matter your age. We’re here to help and explain the benefits of this incredible membership perk.

Let's explore the benefits of wills and trusts and how to secure your legacy.

WHAT IS A WILL?

Understanding the role and significance of a will is the first step to creating an estate plan. A will is a legally binding document that explains what you’d like to happen with your assets – your home, car, jewelry, checking and savings accounts, life insurance policies, even your baseball card collection – and how they are given to loved ones and who those people (or pets) are after you’ve passed away. In other words: who gets your stuff?

Trust & Will defines a will as “a plan for who will look after your children, what should happen to your assets and how you’d like to be cared for, when you need it?”

It's your voice in a document, allowing you to name the beneficiaries** – the people who will inherit your stuff - for your possessions, nominate an executor who will oversee the management of your estate and appoint guardians for any minor children.

The absence of a will can lead to challenges for those you leave behind. Without this critical document, your state's laws will determine how your belongings are shared, which might not match up with what you or your loved ones need or want. This can also open the door to potential problems among family members, adding stress during an already difficult time.

Also, having a will makes the probate process - where the will is verified - smoother and potentially quicker for your beneficiaries to receive their inheritance. (Keep reading, we will cover the probate process later in this article.)

The importance of a will extends beyond the giving away of your stuff. It's about providing for and protecting the people who matter most to you. Crafting a will offers peace of mind, not just for you but also for your family, knowing that your wishes are clearly laid out and legally recognized.

WHAT IS A TRUST?

OK, now that we have established what a will is, and what its function is, let’s move on to trusts, which are a little bit more complicated.

Trusts offer a more complex avenue in estate planning, complementing wills by providing a unique set of benefits tailored to individual needs and circumstances.

A trust is not just a legal document like a will but a relationship in which you entrust your assets to a chosen trustee for the benefit of your specified beneficiaries. This strategic tool can serve various purposes: it might be designed to avoid (or minimize) the often lengthy and public process of probate, reduce potential estate taxes*** or provide for a loved one with special needs without impacting their eligibility for government assistance.

Each type of trust—from revocable to irrevocable, from special needs to charitable—offers distinct advantages. For example, a revocable trust allows you the flexibility to make changes as your life circumstances change, while an irrevocable trust can offer stronger asset protection and tax benefits***. The choice of trust, or combination of trusts, can significantly impact how your assets are protected, managed and eventually passed on to your heirs or charities of your choice.

The benefits of trusts include:

Greater control over how and when assets are distributed.
They apply to any assets held inside the trust.
Various options to choose from, as trusts come in many different types and forms.
Minimization or avoidance of probate.****

WHAT IS THE PROBATE PROCESS?

Why would you want to minimize or avoid probate?

Probate is like a legal checklist to make sure a person's wishes are followed after they die. A special person called an executor helps settle their debts and gives their stuff to the people they chose. It can take a long time, especially if there are problems or disagreements about who gets what.

“In easiest-to-understand terms, probate is simply the legal procedure your estate goes through after you pass away,” writes Mitch Mitchell, Trust & Will’s Product Counsel, Legal. “During this legal proceeding, a court will start the process of distributing your estate to the proper heirs.”

It's an essential step in estate planning, ensuring that a person's final wishes are honored and that the distribution of assets is done according to the will.

Trusts, on the other hand, can help manage an estate's assets during a person's lifetime and beyond, often allowing for an easier transfer of assets outside of probate.

When you don’t have a will, the probate process becomes more complicated, and it is left up to the courts to make decisions for you. The more planning you do now, the easier it will be on your loved ones later.

THE TRUST & WILL DEAL

Now that we’ve sorted that out, let’s jump into Trust & Will’s deal for credit union members.

Trust & Will offers:

Convenient, easy-to-use online platform.
Legally binding documents customized to fit your needs.
Best-in-class, top-rated member support.
Fast estate planning – plans can be completed in 30 minutes.

You can also take an online quiz that will match you with a plan.

The Trust & Will website will guide you through the process and the first step is signing in and creating an account – all very easy.

After signing in, you can watch a six-minute video of Patrick Hicks, Trust & Will’s Head of Legal, explaining what happens if you die without having a will in place.

You then create a basic profile, including your marital status, whether you have kids and if you want help from an attorney (at additional costs).

With the credit union discount, trust-based estate plans start at $399.20 (regularly $499) and wills start at $159.20 (regularly $199).

Here are some additional resources:

*Trust & Will is currently available in a limited number of states.

**Accounts with beneficiary designations are exempt from probate and a will. Only accounts with no surviving joint owners or beneficiaries are facilitated through an estate or will.

***Consult your tax advisor.

****Depending on the size and complexity of your estate, additional estate planning guidance beyond the scope of Trust & Will may be advisable.