Difference Between a Will and a Trust: Which Is Right for You?

Are you in a real estate planning situation? Well, you’ve probably heard of the terms Trust and Will. But do you know the difference between the two? Or do you know which one is best for you? If your answer to all the above questions is NO, then this blog is for you!

It is important to ensure your family’s safety even when you’re not around. This gives you peace of mind, knowing your property will be distributed according to your wishes. Also, it secures your legacy. Hence, one of the best ways to conduct estate planning is either via a Will or a Trust. 

To ensure you have everything in place and what to include in a trust or a will, hire a professional estate planning lawyer. 

They might seem the same – but they have huge differences. We will discuss those differences below! Then we will figure out which one is best for you – according to your requirements. 

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Will Vs. Trust: Understanding The Basics!

Will: What Is It?

A will, also known as a last will and testament, is a simple and formal legal document. It specifies how you want your possessions to be allocated in the event of your passing. Also, it enables you to choose guardians for any minor children and name an executor, who will be in charge of making sure your intentions are followed.

One thing you must keep in mind is that it will not exclude you from the legal procedure known as probate. This is when a judge certifies your will and manages the division of your property. Probate can take months or even years to complete, and it can cost a lot in court and attorney expenses, which could lower the amount your beneficiaries end up with. 

Your will can be detailed or generalized – depending on your wish. Your estate planning attorney can help you customize it as you want. For example, you can allot all your wealth and assets to one single beneficiary, or you can distribute specific items of certain sums of money (also known as bequest) to multiple beneficiaries. 

That’s not all! You can also mention instructions for the care of any dependents or pets you may leave behind. Creating a will is important as it minimizes the chance of disputes among family members. 

Note: You can amend your will later using an amendment called codicil. Also, you can write an entirely new will.

Trust: What Is It?

A trust is a fiduciary relationship. It allows a third party, or trustee, to hold assets on behalf of the beneficiary. A trust can be arranged in several ways. It specifies how and when assets pass to the beneficiary. 

A trust enables you to give control of assets to a named trustee who will look out for the interests of your beneficiaries. Two types of trust can be arranged – 

• An irrevocable trust offers more asset protection but cannot be changed once it is established. 
• A revocable living trust gives you control over your assets during your lifetime and the ability to make adjustments as needed.

One of the main benefits of a trust is that it spares your estate from the probate process. Hence, your beneficiary can gain quicker access to the assets that are transferred through a will. Additionally, trusts provide you greater discretion over the distribution of your assets and when. 

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Will Vs. Trust: Key Differences

One thing to note here is that a will and trust say who will receive your assets, but in different ways. 

• When They Go Into Effect

Depending on the sort of trust, it will only go into effect after your death. However, a trust may go into effect right away or upon your passing. 

• Complexity

A will, however, is a simple and easier process, but it has some drawbacks. For example, it will offer limited control. Hence, the beneficiary has to go through a probate process. On the contrary, trust is a bit more complicated process. 

• Probate

A will needs to undergo the probate process. The process can be expensive and time-consuming. Contrarily, a trust avoids probate, enabling a more rapid and discreet distribution of assets.

• Flexibility

Although a will lays out how your possessions will be dispersed after your death, it does not provide you much latitude in that regard. A trust is a preferable alternative for people with complex estates or special requests since it gives you more control over the distribution of your assets and when they are given.

• Privacy

They will become public records because they need to be probated, which means that everyone can see the specifics of your estate. On the other hand, trusts are private and do not require public filing.

• Cost

While trusts can protect your beneficiaries from future expensive probate fees, wills are often less expensive to draft. That being said, the initial cost of establishing a trust is usually more than that of a will. Moreover, once you create a trust, you have to fund it by transferring assets to it. 

Will or Trust: Which One Is Best For You?

When we talk about choosing between Trust and Will, it is important to understand that there are different and specific benefits. It cannot be guaranteed that one is better than the other. The choice between the two depends on your requirements. 

Once you understand your situation, needs, and goals – you can figure out which one is best for you. If not, you can also hire an estate planning attorney in Reno, NV. They will help you understand which one you should choose.  

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Takeaway

Planning for a secure future should always be on your priority list. Hence, you must always choose to have a trust or a will to ensure your assets and wealth are evenly or properly distributed among your family members. 

Make your decisions before it’s too late. This is because if you don’t do it – the strain will fall on your loved ones. So, don’t leave them hoping. Take the first right step to securing your family’s future. 

Looking Forward to Arrange Trust or Will? Contact Schulze Law Group!

If you are lost or overwhelmed about going through the process – worry not! A professional and well-known estate planning lawyer at Schulze Law Group can help you understand the process. We also understand your goals and needs and then tell you what’s best for you!

Begin your estate planning process with Schulze Law Group right now rather than waiting until it’s too late. You will not only safeguard your loved ones by doing this, but you will also experience the peace of mind that comes from knowing your legacy is safe.

Call Schulze Law Group now to hire an estate planning lawyer in Reno, NV.