When it comes to Estate Planning we use different tools to protect and transfer your family assets. Of the various estate planning options available, deciding on the right path to can feel overwhelming. Fear not, we are here to help!
Being properly informed so that you can make the appropriate preparations for your future and make important decisions now is the best way to make things easier on your loved ones when they’ll need it most.
Will vs Trust
Although there is a lot of overlap between wills and trusts, there are also some key differences between the two. Ultimately, both are ways of saying who gets your property. Wills and Trusts just do it in different ways and each has its advantages and disadvantages.
One major difference between the two is how and when they take effect. Wills don’t take effect until you die, while a trust takes effect as soon as it’s signed and funded.
It may be easier to think of a will as a “simple” document.
With a will, you can: Name guardians for children and pets, Name where your property will go, Determine final arrangements
The simplicity of a will, although a simpler process, has some drawbacks. For example, wills provide some limited control over the distribution of assets. They will also likely need to go through some form of probate after you die.
A Trust is a bit more complicated but can offer great benefits. With a Trust, you can: Offer more control over when and how your assets are distributed and have Access to all assets held in the trust
Remember that once you have created a trust, you must also fund it to transfer assets. This makes setting up trusts a bit more complicated, but trusts have one major advantage over wills. Trusts are often used to minimize or completely avoid probate, which is a huge plus for many people.
