Not sure what’s the difference between a living trust vs. will? Living trusts and wills are both beneficial estate planning documents, and while both have value, they have their differences.
Here’s a simple breakdown tackle the living trust vs. will question, to understand the differences between these two documents and how they both can help you make your own estate plan.
What’s In a Will?
What exactly does a will do? A will is a document that allows you to distribute your property to the beneficiaries of your choosing.
You’re also able to appoint an executor who will be responsible for managing your property after your death and making sure that your beneficiaries receive their designated assets.
A will also gives parents the opportunity to appoint a guardian who will be responsible for caring for their children if they are ever unable to. Fact: A will is created during a person’s lifetime but is only effective after death.
What’s In a Living Trust?
What about a living trust? This document is different from a will in that it can be effective during a person’s lifetime.
This document is able to easily be adjusted during your lifetime. A living trust is similar in that it allows you to manage your assets.
You’re able to choose how the assets in your living trust will be distributed after your death. You will choose beneficiaries who will receive the assets and a successor trustee who will help to manage and distribute your belongings.
If you become incapacitated, your successor trustee is able to manage your assets and help you with your financial affairs. This is a big benefit to creating a living trust.
Which One Do You Need?
It’s beneficial to set up a will because you’ll be able to choose how your assets will be distributed after your death and you can also help to ensure that your children are always cared for. This is something that is extremely beneficial.
It’s beneficial to create a living trust if you’re looking for a way to manage your asset distribution. If you want someone to be able to access these assets during your disability or incapacity, you will want to create a living trust instead of a will.
Both documents can be extremely beneficial. It’s important to work with an attorney when creating any estate planning. While it’s possible to do your own planning, it’s easy to make costly mistakes. A lawyer can help walk you throughout the process of how to decide on the living trust vs. will debate and can also answer all of your questions and concerns.
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