Do I need a will or a living trust? Are both the same, or are they different?
Even the most experienced and competent estate planners might often get misled by the advantages of a trust over a will.
There are benefits to having a trust that bypasses a will, such as avoiding court proceedings. However, to determine what estate planning tool will be best for you, it is helpful to look at both.
This article will focus on the differences between trust vs will. Read on to find out the answer.
Defining Trust and Will
What is a Trust? It is a legal arrangement that holds or protect the asset and property of people or organizations in conformity with the owner’s intentions.
What is a Will? A legal document outlining how one’s possessions and assets get distributed after death.
Key differences: Trust vs Will
A trust is irrevocable, meaning that once created, it cannot be undone without the beneficiary’s permission. Once created, the trust takes into effect.
Trusts are useful in managing the assets of the person who created the trust as long as he is alive.
While a will or a living will is revocable, the person who creates the will can change the document at any time. Once the person who created the will dies, the will then takes into effect.
Finally, a trustee manages a trust, while an executor manages a will.
To answer the question of which one estate planning tool may be better. It would be best if you should consult with an attorney or visit frameandframe.com to determine what’s best for you.
Benefits of Having a Trust
A trust has several advantages, including the ability to help you avoid probate, protect your assets, and manage your property after death. This procedure can be time-consuming and costly, but trust can bypass the probate process of the courts.
It can provide asset protection if you create an irrevocable trust, creditors, lawsuits, and estate taxes cannot reach your assets.
Additionally, it can be used for estate planning, such as tax reductions.
Benefits of Having a Will
Having a will can save your heirs money and trouble and prevent feuding.
A will gives you peace of mind knowing your loved ones will inherit all your properties accordingly, even after your death.
If there is no will left, the courts will decide how to divide your assets.
Understand the Differences Between Trust and Will
If you’re trying to decide which one is best, it’s important to understand the key differences between trust vs will.
When you give someone else the legal right to hold, manage, and benefit from your assets, you are creating a trust. On the other hand, a will is a legal document that specifies how you should distribute your property after your death.
A lawyer or legal advisor can help you understand the pros and cons of each estate planning tool.
Don’t stop getting smart about legal matters now. For more helpful advice, check out our other blog posts.