When first entering the world of private estate law, you will hear the terms will and trust used interchangeably. Well, there are crucial differences between a will and trust.
They both share a common goal; to manage your estate after you pass. The difference lies in the control the State has in approving incoming estates. In this article, we will reveal the history of the will, the differences between the will and trust, and how the will and trust work.
Let’s start with the difference between a will and trust!
Will vs Trust
Finding an estate planning attorney to craft either a will with trust is a wise decision. They are two different types of legal frameworks used to design how one wants their assets divided and distributed after their death. A will and a trust are both legal documents that can be used in tandem to protect assets and provide for heirs.
A will is a legally binding document that states how an individual’s estate planning documents should be distributed upon their death. A trust is different in that it is used to manage and protect assets for beneficiaries both during an individual’s lifetime and after their death. A trust includes provisions for how assets are to be distributed to heirs.
And it can help to protect assets from creditors, lawsuits, and predatory family members. It also removes these assets from the probate process. Compared to a will, trusts are set up to provide more control and flexibility to the individual setting up the trust in terms of managing assets and providing for heirs.
Will Is a Simple Document
A Will is a simple document that allows guardians to legally make explicit their wishes to ensure the care of children and pets should something occur to them unexpectedly. By naming guardians, parents can rest easy knowing their wishes are securely in writing and enforceable by the law.
Your will also allows you to name an executor who will manage the distribution of your assets to the proper recipients. And your will should be clear and precise so that it is handled as you wish; otherwise, the assets may not be distributed as you would have wanted.
The will is one of the most important documents you will ever create, as it will determine who will inherit what assets after your death. Wills should be kept up-to-date, especially if you have recently purchased property or made changes to your financial portfolio.
A Trust Is a Bit More Complicated
A Trust is a bit more complicated than just a simple agreement. It is a legal document that creates a fiduciary relationship with the grantor (the person responsible for creating the trust and transferring assets to the trust) and the trustee (the person responsible for managing the trust).
The terms of the trust dictate who will receive the trust’s assets and when. A trust is created to manage assets for the benefit of the designated beneficiary or beneficiaries.
Understanding the Difference Between a Will and Trust
In conclusion, one must weigh their intentions and abilities when deciding between a Will or Trust. A will is easier, but it may not accomplish your desires after you die, while a Trust may be more costly and complex, but it will better protect your desires. Speak with an attorney to learn more about the difference between a will and trust.
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