Video – Will vs Trust: Four Things a Trust Can Do That A Will Cannot
A will vs trust is a question many people have when thinking about their estate planning. To help you understand the choice, here are four things a trust can do that a will cannot. To get a free book to help you with your estate planning, ⭐️click here: https://bit.ly/30K2tEn
Both wills and trusts are estate planning documents that can be used to pass your wealth and property to your loved ones upon your death. However, trusts come with some distinct advantages over wills that you should consider when creating your plan.
That said, when comparing the two planning tools, you won’t necessarily be choosing between one or the other—most plans include both. In fact, a will is a foundational part of every person’s estate plan, but you may want to combine your will with a living trust to avoid the blind spots inherent in plans that rely solely on a will.
Here are four reasons you might want to consider adding a trust to your estate plan:
1️⃣ Avoidance of probate
One of the primary advantages a living trust has over a will is that a living trust does not have to go through probate. Probate is the court process through which assets left in your will are distributed to your heirs upon your death. If your estate plan consists of a will alone, you are guaranteeing your family will have to go to court if you become incapacitated or when you die. But, if your assets are titled properly in the name of your living trust, your family could avoid court altogether. This can save your loved ones major time, money, and stress while dealing with the aftermath of your death.
In probate, your will becomes part of the public record. This means anyone who’s interested can see the contents of your estate, who your beneficiaries are, as well as what and how much your loved ones inherit. Using a living trust, the distribution of your assets can happen in the privacy of your lawyer’s office, so the contents and terms of your trust will remain completely private.
3️⃣ A plan for incapacity
A will only governs the distribution of your assets upon your death. It offers zero protection if you become incapacitated and are unable to make decisions about your own medical, financial, and legal needs. With a living trust, however, you can include provisions that appoint someone of your choosing—not the court’s—to handle your assets if you’re unable to do so. Combined with a well-drafted medical power of attorney and living will, a trust can keep your family out of court and conflict in the event of your incapacity.
4️⃣ Enhanced control over asset distribution.
Another advantage a trust has over just having a will is the level of control that a trust offers you when it comes to distributing assets to your heirs. For example, you could stipulate in the trust’s terms that the assets can only be distributed upon certain life events, such as the completion of college or purchase of a home. Or you might spread out distribution of assets over your beneficiaries’ lifetime, releasing a percentage of the assets at different ages or life stages.
If, for some reason, you don’t want a living trust, you can use what is called a testamentary trust to establish trusts in your will. A testamentary trust won’t keep your family out of court, but it can allow you to control how and when your heirs receive your assets after your death.
♦️In the end, the best way for you to determine whether your estate plan should include a living trust, a testamentary trust, or no trust at all is to meet with a lawyer who will take you through an analysis of your personal assets, your family dynamics, what’s most important to you, and what will happen for your loved ones when you become incapacitated or die.
⚠️This video provides general information only and is not legal advice.
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