As an Estate Planning Lawyer, many people have asked me over the years – What is the difference between trust and a will? What’s more, which would it be a good idea for you to make? Trusts and wills both enable you to name beneficiaries of your property. Past that, they are helpful for various purposes. For instance, many people use trusts to maintain a strategic distance from probate. Be that as it may, living trusts are more complicated to make, and you can’t use a trust to name an execute or agent for your young child. You require a will to do those things.
Living Trusts And Wills
Here is a quick comparison of what wills and living trusts can do. Read below for details about each characteristic.
Name Beneficiaries For The Property
The main purpose of both wills and trusts is to name beneficiaries for your property. In a will, you basically describe the property and list who ought to get it. Using a trust, you should do that and furthermore “transfer” the property into the trust.
Leave Property To Young Children
With the exception of things of little esteem, kids under 18 can’t lawfully claim property. When you leave property to a minor, that property must be managed by a grown-up – at any rate until the point that the kid turns 18.
When leaving property to a minor using a will, you should name an adult to deal with the property. Or, then again, use your will to set up a testamentary trust for the young child or name a caretaker under the Uniform transfer to Minors Act.
Revise Your Document
Both revocable trusts and wills enable you to revise your documents when your conditions or wishes change. The choices you make in these documents are not an unavoidable reality until the point when you die.
What Living Trusts and Wills Cannot Do
Leave Money To Pets
Pets can’t possess property, so you can’t leave cash to your pets. You can use your will to leave your pets to a trusted caretaker, or you can make a pet trust. In any case, in the event that you attempt to leave your pet property, that property will end up in your residuary estate.
Leave Passwords For Online Accounts
After you die, your executor will value having the capacity to get to your online accounts, PCs and different gadgets. In any case, don’t leave this data in your will or trust. Rather, make a different document and keep it in a safe place with your other estate planning documents.
Do I Need a Will or a Living Trust?
Many people require a will, yet not everyone needs a trust. Regardless of whether you require a trust relies upon your age, how rich you are, and whether you’re married.
Regardless of the possibility that you decide that you require a trust, you ought to likewise make a will to name an executor, name a guardian for minor children, and deal with any property that doesn’t end up in your trust.
Free Consultation with a Estate Planning Lawyer
If you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.
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Spent two years building electric trains for the underprivileged. Spent several years working with carnival rides in New York, NY. Garnered an industry award while analyzing action figures in Tampa, FL.