If you want your assets (including property) to be distributed in a certain way when you die, there are certain tools that you can use to ensure that your wishes will be carried out in the exact way that you have determined. Here are a few common / useful estate planning tools:
- A Will – a will or testament is a legal declaration by which a person (the testator) names one or more persons to manage his or her estate and provides for the transfer of his or her property at death.
- A Trust – a trust is a legal arrangement that allows for property to be held by a person (or an institution) – called the trustee – for the benefit of a specific person, group of persons, or an organization – (called the beneficiary). Basically, there are two types of trusts – a living trust (or inter vivos trust) and a testamentary trust.
- Joint Ownership – a simple way to go about things (assuming that the joint account holder does not die at or around the same time). It can be used for bank accounts, investments and personal assets, so that in the event of the death of one part-owner, the share of the deceased passes to the survivor(s).
- Outright Gifts – you can give the property / asset to someone as an ‘outright gift’.
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