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Real-Estate
Wills or Trusts are estate-planning tools
to organize how you want to distribute your estate.
What is Will?
A will is a legal document that allows you to distribute your property to those of your choosing. It allows you to assign specific items from your estate to one person and other items to other people or an organization. You can also name an Executor, the person who will carry out your wishes.
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Wills also give you the opportunity to pick a guardian for your young children. The guardian will be responsible for their welfare.
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If you don't have a will, the government will use their standard will to decide how to distribute your estate.
Probate is the process your estate goes through after you pass away if you haven’t done proper or comprehensive Estate Planning. It is a court-supervised proceeding, and depending on how solid your Estate Plan is, can be costly and take a long time.
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What is Trust?
A trust allows the settlor, aka the person with the assets, to nominate a trustee who will hold the assets for the beneficiaries of the trust.
Also, a trust allows the settlor to dictator how and when the assets will be invested, distributed to the beneficiaries, etc. These instructions can dictate that the trust will take effect during the settlor’s lifetime, if the settlor becomes incapacitated, or when the settlor dies.
There are several different types of trusts (for example express trusts, private trusts, or charitable trusts) that can each be used to achieve various estate-planning objectives.
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One main benefit associated with trusts is that they can be used to avoid probate, which can save your beneficiaries time and money.
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If you would like for your affairs to remain private it is key to note that a will becomes a public document when you die while trust instruments do not.
What is the difference between a will and a trust?
One difference between a will and a trust is the fact that a will can only go into effect upon your death, while a trust can either be used to manage property during your life or after your death. Another important difference is that a person can only have one valid will at a time while a trust can be used to either replace or supplement a will.