Estate planning is often misunderstood as something only the wealthy need. However, whether you live in Las Cruces, New Mexico, or anywhere else, creating a will and trust is crucial for everyone, regardless of financial status or age. These essential tools help you plan for the future, protect your assets, and ensure your wishes are carried out when you’re no longer here to oversee them. Let’s explore the key differences between wills and trusts and why both might be important for you and your family.
The Basics of Wills and Trusts
A will and a trust are both legal documents that outline how your assets will be distributed after your death, but they work in different ways.
- Wills: A will is a legal document that specifies who will inherit your assets after your death. It also allows you to appoint a guardian for minor children and specify how your debts will be paid. A will goes through probate, which is the court-supervised process of validating the document and distributing your estate according to your wishes.
- Trusts: A trust, on the other hand, creates a legal entity that holds your assets during your lifetime. You, as the grantor, retain control of these assets, and a trustee manages them after your death. Trusts can help avoid probate, which can be lengthy and costly.
Both tools serve the same goal—ensuring your assets go to the right people—but they offer different levels of control, privacy, and protection.
How Many Americans have a Will?
According to a survey by Caring.com, only 32% of Americans have a will in 2024. This is a 6% decrease from 2023, marking the first drop in estate planning rates since 2020. Many Americans cite a lack of assets, procrastination and uncertainty about the process as reasons for not having a will. However, estate planning is vital for everyone in Las Cruces and the U.S., including young people or those who possess few assets.
Real Stories Highlighting the Need for Estate Planning
An article by Katv describes how mother of four, Amy Kennedy, delayed estate planning partly because their eldest son has special needs. They found determining who would care for him challenging, and the decision drifted away with time. “You just get so busy with the day-to-day that you blink, and a year goes by,” she said.
Micah Bonaviri, an estate planning lawyer, highlights another trend: people are getting married and having children later in life. This shift can lead to delays in estate planning, since people may not prioritize it until they reach these milestones. Individuals without children may also underestimate the importance of having a will, thinking it’s only necessary for those with heirs.
Why Las Cruces Families Should Consider a Trust
You may have heard about the benefits of trusts from friends or neighbors here in Las Cruces, and it’s worth understanding why they’re such a popular tool in estate planning.
Avoiding Probate
Probate can be a complex and time-consuming process. For example, if your will is the only document guiding the distribution of your assets, your beneficiaries may have to wait months, or even years, to receive their inheritance. Probate also opens up your personal affairs to the public, which can lead to unnecessary stress for your loved ones. In contrast, a living trust bypasses the probate process altogether, allowing your assets to be distributed quickly and privately.
Maintaining Control and Flexibility
With a living trust, you can continue to control your assets during your lifetime, adjusting the terms as your circumstances change. For instance, if you purchase a new property in Las Cruces or have another child, you can easily update your trust to reflect these changes.
Trusts are also beneficial for families dealing with complex situations, such as special needs children, blended families, or estranged relatives. A trust ensures your wishes are honored without the risk of interference from those who may challenge your decisions in probate court.
Protecting Your Privacy
In a smaller community like Las Cruces, privacy matters. Trusts allow you to keep your financial and family matters out of public records. By avoiding probate, you ensure that your affairs remain private, shielding your beneficiaries from potential conflicts or unwanted attention.
The Importance of Wills for Las Cruces Residents
While trusts offer significant advantages, they aren’t the right choice for everyone. For many people, a will is a more straightforward, cost-effective option. A will can still provide you with peace of mind, knowing your affairs are in order.
Naming Guardians for Minor Children
One of the most important reasons to have a will is to designate guardians for your minor children. Without a will, the court decides who will care for your children if you pass away. By naming a guardian in your will, you retain control over this critical decision.
Simple Asset Distribution
If your estate is relatively straightforward—perhaps you own a home, a few bank accounts, and personal belongings—a will may be enough to manage your affairs. The process may go through probate, but with the guidance of an experienced attorney, it can still be managed efficiently.
Why Estate Planning Isn’t Just for the Wealthy
It’s a common misconception that estate planning, particularly creating trusts, is only for those with vast wealth. However, every Las Cruces resident—regardless of financial status—can benefit from a will and trust.
Even if you don’t have significant assets, it’s important to plan for your future. If you were to pass away without a will or trust, the state of New Mexico would decide how to distribute your assets, often leading to unintended consequences. In addition, without an estate plan in place, your loved ones may face unnecessary stress, delays, and legal fees while trying to settle your affairs.
Preparing for the Unexpected
The COVID-19 pandemic has taught many young adults the importance of estate planning, regardless of age. We’ve seen an increase in younger clients coming into our Las Cruces office to create their wills and trusts, understanding that life is unpredictable. By starting early, you can ensure your assets, no matter how modest, are handled according to your wishes.
How to Get Started with Wills and Trusts in Las Cruces
Taking the first step toward creating a will or trust may seem overwhelming, but it doesn’t have to be. Here’s a simple guide to help you get started:
- Inventory Your Assets: Make a list of everything you own, from property and bank accounts to sentimental items like family heirlooms.
- Consider Your Beneficiaries: Think about who you want to inherit your assets and whether there are any specific instructions for how they should be used.
- Choose a Guardian: If you have minor children, decide who you trust to care for them if something happens to you.
- Consult with an Estate Planning Attorney: Meet with an attorney to discuss your goals and create the necessary documents to protect your family’s future.
- Review and Update Regularly: As your life changes, whether through marriage, the birth of a child, or buying a new home, make sure to update your will and trust to reflect these new circumstances.
Speak with a Las Cruces Estate Planning Attorney to Create Wills and Trusts
Planning for the future is one of the most important gifts you can give your loved ones. Whether you choose a will, a trust, or both, ensuring that your assets are protected and your wishes are honored is essential. Don’t wait until it’s too late. Contact E-Law in Las Cruces, New Mexico, to request a discovery call and start the estate planning process today. Your peace of mind—and your family’s future—are worth it.
