Wills and Living Trusts are important aspects of estate planning. They can help make sure your assets go as you choose them to after you’re gone. Though the purposes they serve are similar, understanding differences between the two is crucial in order to make an intelligent decision about what may be best for your own sui generis circumstances – article source!
Living Trusts: A Tool for Lifetime Asset Management
Living Trusts make it possible to control your assets during your own lifetime. Their nature is flexible allowing for changes as long as you are still capable, while they grow rigid on into the future and after you die. Such a document is frequently drafted by elder-law attorneys, people with expertise in such matters.
You can run the management of your own Living Trust or bring in a Trustee to do it so yourself. One of the biggest benefits of using a Living Trust is that you avoid the probate process—keeping everything private and preventing court intervention in potential disputes between heirs.
While forming a Living Trust might cost more initially, in the final analysis it frequently creates tremendous savings on involving the estate in probate.
Wills: An Economical Estate Planning Choice
A Will is an important legal document that stipulates the manner in which your property will be distributed to your heirs. Typically they are used in conjunction with Living Trusts to cover things that are not put into trust.
When an estate is directed by a Will, it has to go through probate in which the court oversees the entire distribution process. The terms of a Will can be seen by courts as merely disposable suggestions and any disputes that arise from beneficiaries or creditors are handled in probate.
Preparing a Will involves naming someone as your power of attorney and a conservator to handle management of the estate right after your death. Although it costs less initially to write a Will than set up a trust, probate could bring about higher costs for beneficiaries.
The Value of Professional Estate Planning Guidance
The estate planning specialist offers vital guidance in deciding whether a Will, Living Trust, or both is best tailored to fit your needs. His guidance should eliminate disputes over inheritances and reduce the risk of litigation. With expert advice for your estate plan, everything will be clear and you can never be misunderstood.
Getting advice from an estate planning specialist is a wise move to ensure that your loved ones enjoy financial security. When Wills and Trusts are prepared by a professional, there will be a clear and easy finish to your final demand.