If you’re new to estate planning, you’ve probably heard of wills and trusts, but you might be unsure about which one is right for you. To help make the planning process less stressful, here’s a look at the differences between wills and trusts and some suggestions for choosing the right option for you.
What Is a Will?
A will is a statement of what should happen to your estate after you pass away. Your estate includes everything you own, from real estate to insurance policies, and a will gives you control over who inherits these assets upon your death.
If you don’t have a will, then the courts will apply certain legal rules to decide who should inherit your property, which may not be in line with your wishes.
What Is a Trust?
A trust is a legal instrument. You place certain assets into the trust for future beneficiaries, and you appoint another individual to manage the trust on their behalf.
Depending on how you set up the trust, you can ensure some assets bypass probate and avoid certain taxes. Some trusts can’t be changed after they’re created, so you should consult an experienced estate planning attorney before designing a trust.
Wills vs. Trusts
Trusts are an efficient way to distribute property after your death. The potential tax benefits mean they’re a financially efficient way to pass on certain assets, and they’re less likely to be contested than wills. However, wills are less expensive to prepare and simpler to execute than trusts, and they can be easier to amend to suit your changing circumstances.
Create an Estate Plan with At Ease Law
Which one is right for you – a trust or will? Comprehensive estate plans often have both, so there’s no need to choose between these tools. The best way to know whether you should have a trust or will is to consult an attorney who can explain the pros and cons of all options as they relate to your situation.
Attorney Barry of At Ease Law understands that there’s no such thing as a “one size fits all” approach to estate planning, and she’ll help you design a plan to suit your specific needs. Let At Ease Law simplify the estate planning process for you – leave a message online or call us now on 702-602-5004.