Are you beginning to plan your estate? Are you wondering about the difference between a living trust vs will?
While no one likes to think about the necessary, the truth is that creating an estate plan is one of the smartest things you can do. It can help you to protect your beneficiaries and also save money, either by avoiding probate or by passing your assets and minimizing taxes. Planning can also help you to guard your assets and designate a guardian for your minor children.
Yet do you need a living will, a trust, or both? What are the advantages of each?
Let's take a look.
A will, also know as Last Will and Testament, is a legal document that states your wishes for property distribution and the care of your children in the event that you pass away. In it, you can clearly state your desired beneficiaries for your assets. These include real estate, bank accounts, and insurance policies.
Your Will can also state who you would like to care for your children in your absence. If you don't have a will, the courts will make this decision. They will also make decisions about property distribution, which can be very time-consuming and cause your family to fight.
A living trust will give a designated individual, known as a trustee, responsibility for managing your assets after you pass on. It is designed for the easy transfer of your assets.
What is the Difference Between a Living Trust vs Will?
Unlike a will, a living trust is in effect while you're still alive. You're also allowed to change it at any time if you do a revocable living trust.
In addition, a properly funded Living Trust usually bypass probate court. This could save your beneficiaries some time and money after you pass, as your assets will be distributed right to them. It will also save you money, as probate is not only time consuming, it is also expensive.
Probate is also a public process, with anyone being able to view your records at a county courthouse. With a living trust, the information related to your estate will stay private.
A living trust will not, however, allow you to choose a guardian for your minor children. This is important to protect both your children and your inheritance. Usually when a Living Trust is created a Last Will and testament is also created. That is to make sure if the Trust is not properly funded, or some assets are not put into trust, the Last Will will take care of it.
If you want to make sure that all documents are well thought out and legally binding, it helps to enlist the help of an estate planning lawyer in Chandler.
Planning Ahead - Setting up your Estate Planning
As human beings we don't like to think about the inevitable. Planning for the future can ensure that your beneficiaries are well taken care of. Once you've learned about the difference between a living trust vs will, you can begin to make smart decisions about your estate.
Don't stop getting smart about your estate planning now. For assistance from qualified estate planning attorneys in Arizona, contact us today. Citadel Law Firm will be pleased to help you. Call today at (480) 565-8020 or click here to schedule your free consultation.