Understanding the Difference Between Wills and Trusts
It's important to plan for the future and ensure your assets are protected and distributed according to your wishes. This is where estate planning comes in — a legal process of arranging for the management and distribution of one's assets after one's death.
Two commonly used tools in estate planning are wills and trusts. While both serve similar purposes, there are significant differences between them that can impact your estate plan. This post will dive into the key distinctions between wills and trusts to help you determine which one may be right for you.
Key Differences between Wills and Trusts
Probate Process
One of the main differences between wills and trusts is how they are handled after your death. A will must go through probate, which is a court-supervised process that determines the validity of the will and oversees the distribution of assets. This can be a lengthy and costly process, potentially delaying the transfer of assets to beneficiaries.
On the other hand, a trust does not go through probate as it goes into effect during your lifetime. This allows for a faster and more private distribution of assets to beneficiaries.
Distribution of Assets
In a will, assets are distributed after your death according to the instructions in the will. This means that the beneficiaries do not have access to the assets until after your death. In contrast, a trust allows for more flexibility in the distribution of assets. The trustee can distribute assets to beneficiaries during your lifetime or after your death, depending on your instructions.
Control over Assets
Another key difference is the level of control you have over your assets. With a will, you maintain full ownership and control of your assets until your death. However, with a trust, you transfer ownership to the trustee. This can be beneficial for those who want to maintain control over their assets even after death, as the trustee is legally bound to follow your instructions.
Which One Should You Choose?
Deciding between a will and a trust ultimately depends on your individual needs and goals. A will may be suitable for simpler estates or those with minor children, while a trust may be better for more complex estates or those who want more control over their assets.
To determine the best option for your specific situation, it's important to consult with an experienced estate planning lawyer. They can assess your unique circumstances and help you create a comprehensive plan that ensures your wishes are carried out after your death.
Both wills and trusts play important roles in estate planning, but they serve different purposes. Understanding the differences between them can help you make an informed decision about which one is right for you. By working with an experienced estate planning lawyer, you can create a personalized plan that provides peace of mind for you and your loved ones.
For more info, contact a local company like Veitengruber Law.
