Many people have heard the term “fiduciary” but might not know what it means. A fiduciary is simply an individual who is in charge of managing another person’s assets. However this is not just a friend, they are required to manage within ethical and legal guidelines. A financial advisor is not necessarily a fiduciary for this reason. There are a variety of fiduciaries including those in charge of your finances, those with power of attorney, and those with executorship over an estate. Having a last will and testament is very important because it can be made legally binding for a fiduciary to follow when dealing with your estate and assets.

Read more: The necessity of a fiduciary: What having a fiduciary means

Many senior citizens rely on Medicaid to access healthcare and needed services. There are specific income and asset requirements in order to qualify for Medicaid. According to Jeffrey P. Scott & Associates LLC, there are some mistakes to avoid while planning for your golden years. Do not put yourself at risk by giving away your assets too soon. Also, do not apply for Medicaid before you have sold or spent down your assets. Finally, don’t fail to take advantage of Congress approved transfers such as gifting money to disabled children or putting assets into a trust. Long-term care planning is complicated, so consult with an expert for some guidance.

Read more: Avoid these 7 common Medicaid planning mistakes

Coming to grips with your mortality is important. You need to figure out what you want to do with your things for example. Deciding this is called estate planning and there are lawyers who can help you. If you have anything you need to decide who to leave it to. You also need to figure out what you want for your funeral. There are many choices and it will definitely help to hire someone so you make the right choices.

Read more: Facts about estate planning for the everyday person

Let’s face the fact that not everyone is good with money, and if you have some to leave your heirs you may be concerned about this. You can get an incentive trust and that may help. Doing this can insure your beneficiary does what they should with the money, and it will also give you peace of mind. A lawyer can help you set up this or any other kind of trust. Thinking about these things is important if you have anything to leave after your death.

Read more: An incentive trust can help keep beneficiaries on the right path

Wills and trusts are often confused and there are many differences that people need to be aware of. If you want to create a trust, or a will for people, then you can always use both. If you want to use only one, then there are certain benefits that each one offers. Wills are a lot less expensive than trusts. Trusts require that you put assets into them at first, so it can be pretty tough.

Read more: Wills and trusts: The differences you need to know