Wills vs Trusts.

 

Wills and trusts are two common estate planning tools that serve different purposes. Here's a brief overview of each:

1. Will: A will, also known as a last will and testament, is a legal document that outlines your wishes regarding the distribution of your assets after your death. It allows you to specify how your property and belongings should be distributed among your beneficiaries. A will can also appoint an executor to manage the administration of your estate, name guardians for minor children, and express your funeral and burial preferences. Upon your death, your will goes through the probate process, where a court oversees the distribution of your assets according to your instructions.

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3. Trust: A trust is a legal entity that holds assets on behalf of beneficiaries. It involves three main parties: the grantor (the person creating the trust), the trustee (person or entity responsible for managing the trust), and the beneficiaries (those who will benefit from the trust). Trusts can be created during your lifetime (living trusts) or established through your will (testamentary trusts). Trusts offer several advantages, such as avoiding probate, providing privacy, managing assets during incapacity, and controlling how and when assets are distributed to beneficiaries. They can also offer tax planning benefits and protect assets from creditors.

Deciding whether to use a will or a trust depends on various factors, including the complexity of your assets, your privacy concerns, the desire for ongoing management, and the potential need for incapacity planning. Estate planning is highly individual, so it's advisable to consult with an attorney specializing in estate planning to assess your specific circumstances and determine the most suitable approach for your needs.