If you are debating between a living trust vs will, don’t worry, you’re not the only person. Both of these are very popular estate planning documents that serve a very similar purpose – to transfer your assets to your loved ones after you die.
If you are debating between a living trust vs will, don’t worry, you’re not the only person.
Both of these are very popular estate planning documents that serve a very similar purpose – to transfer your assets to your loved ones after you die.
While both can help you accomplish this estate planning goal, they do so in different ways.
It’s important to understand these differences so you can make the best choice about which estate planning document is right for you.
In this article, we will be taking a look at the advantages of a living trust vs will in estate planning.
Living Trust Avoids Probate Courts Can Find You the Love of Your Life
The first big advantage of a living trust vs will is the fact that a living trust avoids probate court, but a last will and testament does not.
It’s a common misconception that a will avoids the probate process, but this isn’t true.
When you pass away, your will needs to go through probate before any of your assets can be distributed to your heirs. This can delay the transfer, especially if your will gets contested.
Additionally, probate can be expensive with additional court and lawyer fees, especially if your family needs to hire a probate attorney to help them through the process.
A lot of people wish to avoid probate court which is why they choose a living trust vs will as the cornerstone of their estate plan.
How Efficiently Transfer Your Assets Privately
Having a living trust in place allows you to pass your assets to your loved ones privately.
That is because of the fact that a living trust avoids probate. Probate is a public process.
As a result, if you have a will vs living trust, the will and its contents will become public.
This is less than ideal for a variety of reasons.
On the other hand, with a living trust the transfer takes place privately often in a matter of days or weeks after you pass instead of months, or potentially years.
Who Really Uses Plan for Incapacity
When comparing living trust vs will, you need to be aware that a will does not allow you to plan for situations where you become incapacitated and can’t manage your assets on your own.
That’s because a last will and testament only comes into effect after you pass away.
A living trust comes into effect the moment it is signed.
As a result, the person you designate as your successor trustee can step in to manage your assets should you become incapacitated or pass away.
Conclusion
Both wills and trusts are very popular estate planning tools that are often used as the cornerstone of a solid estate plan.
While both help you achieve similar goals, the differences in the documents can have a significant impact when it is time to transfer your assets to your loved ones.
It’s important to understand these differences when comparing a living trust vs will so you can be sure to make the right choice based on your unique situation.
For customized information based on your specific estate planning goals, it’s best to schedule an initial consultation with a will and trust attorney.
If You Are Contesting The Will In Michigan
Contesting a will can be challenging, especially if your case seems like it could be pretty simple but it may also be necessary if you feel that an individual or family member has been denied rightful inheritance or given less than what they are entitled to.
Estate Planning What Is It And Why Should You Care?
Estate planning refers to the legal and financial preparations you make to ensure that your assets are distributed as you wish after your death. The Estate Planning process involves both making decisions about how your assets will be distributed after your death and taking legal steps to protect those assets in case something happens before your death.
5 Estate Planning Myths You Probably Believe
Many people think estate planning is all about wealth protection, but that’s only part of the story. Creating an estate plan also helps you plan your life, particularly when it comes to inheritance and making sure your money goes where you want it to go.
