Do you still wonder about the differences between a will and a trust? Then you’re probably in the same boat as many. While we’re here to help you navigate this, it is still best to get a basic understanding of the two.
What a Revocable Living Trust Can Do – That a Will Cannot
- Safeguard your interests if you can’t. It lets you appoint someone to handle your money and property that has been transferred to the trust if you can’t manage it yourself. A will only comes into play after your passing, so it’s not helpful during your lifetime.
- Avoid probate. Assets and property in a revocable living trust skip the probate process, unlike those distributed through a will, which can be time-consuming and public.
- Preserve privacy. A will is public, but a trust isn’t. By using a trust, you can keep your family’s matters private after your passing.
- Reduce court challenges. Attacking a trust is generally harder than challenging a will due to privacy.
What a Will Can Do – That a Revocable Living Trust Cannot
- Name guardians for minor children. When it comes to choosing someone to take care of your kids if you’re not around, a will is the tool to use. It’s like a special note that says who you want to be in charge of them.
- Choose an executor. A will lets you choose someone called an executor or personal representative. They’re like the ones who tidy up things after a big event. So, if you pass away, this person steps up and works with the probate court. They collect and keep safe your stuff that’s not in a trust, pay any debts you might have, and then give what’s left to the folks you’ve named to receive it. However, if everything you own is already in a revocable trust, having an executor might not be needed.
What Both a Will and Trust Can Do
- Allow changes. You can update them if your intentions or situation changes. Take note that this is only allowed if you still have the mental capacity to do so.
- Strategically name beneficiaries. Both options empower you to choose who should get your belongings. However, a will only affects items that are in your name personally, while a trust’s directions influence only the things titled under the trust’s name.
- Offer asset protection. Trusts, and sometimes wills, can include protective measures to prevent creditors from seizing assets that were transferred to your beneficiaries.
Are you ready to setup your wills and trusts?
With these foundational insights, we can collaborate more effectively to craft a personalized estate plan that aligns with your life aspirations. Reach out to us now to schedule a consultation, whether in person or virtually.
