As one gets towards the end of their life, the mind turns towards the future of a world without us. Most people think of the well-being of their family. Estate planning is all about ensuring that those we care for will be alright after our passing.
If you’re new to the concept of estate planning, you might be somewhat confused about the difference between a trust and a will. Many people confused these two things and see them as one and the same.
What is a trust vs will, and what are the benefits of each? Read on and we’ll walk you through what you need to know.
What Is a Will?
There are many types of wills out there, but the general purpose of each of them is more or less the same. A will is a legally enforceable document. It explains and lays out how you want your assets and general affairs handled after your death.
In some instances, a will might also stipulate one’s desires for funeral services.
A person will make a list of their assets and then leave these various assets to family and friends in their life in the event of their passing. When a person makes a will, they make a legal document that becomes a piece of public documentation.
If a person dies without a will, the state will become involved and oversee the distribution of assets.
What Is a Trust?
A trust has many similarities with a will. A trust will also allow an individual to pass on their belongings, finances, and assets to a third party. However, the benefit of a trust is that an heir will not need to go through probate court.
Most trusts are established while the person in question is still alive and kicks into gear once they have passed. These can be more complicated to set up than a will and might require that one work with an estate planning attorney.
An attorney will have a great deal of experience handling trusts and can ensure that the passage of assets and property will be able to go off without a hitch.
Difference Between a Trust and a Will
A trust and a will are very similar, but both work in partnership as opposed to in opposition of one another. A trust is often more complicated than a will and costs more to establish. They are more fine-tuned and thorough.
There’s a chance that assets may not be distributed as you wish once a will moves through probate court. However, a trust can do a lot to ensure your belongings are distributed as you wish.
A will can also establish a trust after one’s passing.
Understanding Estate Planning
There’s a lot that needs handling at the end of a person’s life. Estate planning can be employed for this purpose, though it’s important that you take the time to understand the difference between a trust and a will.
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