As you make plans for the distribution of your assets after your death, you’ll hear the words “will” and “trust” often. Each is a very effective way to take care of your estate, but their similarities end there. Which one is for you? Although there is no easy answer, a little information about each will help you as you evaluate your needs.
Wills can be written by a layperson without a law degree.
Wills can be updated simply by creating a new one.
Wills become matters of public record, so all of your assets will be publicly disclosed.
The use of a will requires that your estate pass through the probate process prior to transferring your assets to your beneficiaries.
If your estate is small, probate fees may be less expensive than paying to set up a trust.
Trusts must be drafted by a lawyer.
Trusts, once formed, are an actual legal entity.
Changes in assets and beneficiaries will be made to trusts by a lawyer.
Since the formation of a trust is a private matter, your assets will usually not be available to the general public.
Assets in the trust pass to your beneficiaries at the time specified by you.
A trust allows you to name anyone as your beneficiary regardless of their relationship to you.
If you have assets in different states, a trust allows your estate to avoid passing through multiple states’ probate procedures.
A trust can be written to allow a business you own to continue operating after your death.
To work properly, you must “fund” your trust. You must change the titled owner of your assets from “John and Jane Doe” to “The Trust of John and Jane Doe.”
Trust can dictate the management of your assets in the event of a serious illness.
Deciding how you want to plan for your estate is a tough choice. There are many more things for you to weigh than the highlights listed here. After evaluating the features listed, consider consulting an attorney to help you determine which option is right for you.
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