When it comes to estate planning, two of the most common legal documents are a Last Will and Testament and a Trust. While both documents serve to distribute your assets after you pass away, they have different functions and benefits. In this post, we'll discuss the difference between a Will and a Trust, and which one may be right for your estate planning needs.
Wills
A Will is a legal document that outlines your wishes for how your assets should be distributed after you pass away. It typically names an executor/personal representative who will carry out your wishes and distribute your assets to your beneficiaries. A Will also allows you to name guardians for any minor children you may have and specify any last wishes.
One of the main benefits of a Will is that it is relatively simple and inexpensive to create. However, there are some downsides to relying solely on a Will for your estate planning needs. For example, a Will goes through probate, which is a court-supervised process that can be time-consuming and costly. Additionally, a Will only takes effect after you pass away, so it offers no protection if you become incapacitated or unable to make decisions for yourself. Additionally, probate is a public event, so any creditors or unwanted persons or entities may get notice of your death.
Trusts
A Trust is a legal document that allows you to transfer ownership of your assets to a trustee, who manages them on behalf of your beneficiaries. There are several different types of trusts, including revocable trusts, irrevocable trusts, and special needs trusts. Trusts can be used to manage your assets during your lifetime and after you pass away, and depending on the type of trust they can provide protection for your assets against creditors, lawsuits, and other threats.
One of the main benefits of a Trust is that it can help you avoid probate, which can save time and money for your beneficiaries. Additionally, a Trust can provide flexibility and control over how your assets are distributed, as well as protect your assets from being used for unintended purposes.
Which One Is Right for You?
Deciding whether a Will or a Trust is right for you depends on your individual circumstances and estate planning goals. If you have a simple estate and do not worry about the cost and time of probate, a Will may be the best option for you. However, if you have a more complex estate or want to protect your assets from creditors, lawsuits and probate, a Trust may be the better choice.
At Skipton Law, LLC, we understand the importance of creating an estate plan that meets your unique needs and goals. That's why we offer free estate planning workshops where you can learn more about Wills, Trusts, and other estate planning tools. We invite you to register for our upcoming workshop and discover how you can protect your assets and provide for your loved ones for generations to come.
You can register online on our website www.skiptonlaw.com, or by calling our office at 720-440-2774.