Last Updated on December 20, 2024 by Surender Kumar
Planning an estate is an important part of making sure that your assets are distributed according to your wishes and that your loved ones get them after you pass away. One common problem faced while doing estate planning is choosing between a living trust and a will.
Both of them have their area of focus, solving problems, but they are different from each other when dealing with asset management and probate, which is settling an estate in court.
If you are looking for a trusted and experienced law firm, then contact firms like The Ebbert Law Firm. They know the importance of both and know how important the decision is. Avoiding probate is the main goal for many people, and understanding how living trusts and wills can affect this process is also important.
Read this article to clearly understand how living trusts and wills function. This helps you plan effectively and make sure that the estate is managed smoothly, efficiently, and according to your wishes.
Table of Contents
What Is a Living Trust?
A living trust is a properly established planning tool that basically allows you to manage and distribute your assets with efficiency and privacy. This can help avoid probate and is flexible to manage, too.
Avoids Probate
Assets that are kept in a living trust bypass the probate process. This allows you to distribute the property to the heir quickly. This can save time and avoid any unimportant delays. It is also cost-effective as it saves court-related expenses.
They are not like will; they can be kept a secret and do not need to be part of public records. By staying confidential, you can protect some sensitive financial details and avoid any problems or disputes within the family.
Flexible Management
The creator of the trust, who is also called a granter, has control over the trust while he is alive. If he passes, then a trustee will take over the management so that things can continue smoothly like before.
Costs and Complexity
Making a living trust requires you to pay some costs at the start for getting legal assistance and management. Still, this always proves cost-effective by removing probate fees and related delays.
What Is a Will?
A will is basically a foundational estate plan that has all the outlines of your wishes for asset distribution and guardianship. It is important to know that a will is subject to probate and also have a guardian in case of a minor.
Subject to Probate
Will need to go through probate to check if they are legal or not and also look for the distribution of assets. Although this means that there is supervision, it may take time and, consequently, lead to other expenses.
Easy to Make
Wills are simpler and also cost-effective. This looks like a good option if you have straightforward estates. They are best for people who have modest assets or easy distribution plans.
Guardianship Provisions
A will enables parents to name the guardians of the minor children, which offers protection as well as certainty. This feature makes wills necessary, especially for families with young dependents who may not be in a position to take care of themselves or their families when the parent or guardian dies.
Limited Privacy
The documents can be shared with the public. The will has all the details of your private estate. This shows a lack of confidentiality, which can cause unwanted problems for the heir.
Living Trusts vs. Wills: Key Differences
Choosing between both totally depends on you, your estate, and your goals. These goals can include avoiding probate, privacy problems, or management issues.
Probate Avoidance
Living trusts are intended to avoid probate altogether and provide faster and private distribution of assets. While wills do distribute assets upon death, they need probate, which makes distribution take longer and also expensive.
Privacy Concerns
Another advantage of living trusts is that they provide total privacy since records of the estate are not filed with the public record. Asset information will be made public when it goes through the probate process.
Management Flexibility
Living trusts have many provisions, which makes them easy to manage. Wills do not have provisions for management; they only get into effect when the person dies.
Contact A Professional Today!
Regardless of whether you decide on a living trust, a will, or both, having help from a good probate attorney is necessary. When it comes to difficult times, professional advice makes things easier, helps protect assets, and reduces stress for the family.
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