Choosing Between Living Trust and a Will
Choosing Between Living Trust and a Will
Estate planning can get very complicated and tricky for many, but for almost everyone it can result in stressful decisions and having to choose between different planning options. Among the different tools are trusts and wills. You will most likely have heard of both of them, but you may not be sure whether you need one or both. The two options have their benefits and specific drawbacks, but, to receive personal advice, it is highly recommended to seek the counsel of an experienced lawyer. Reach out to us at Law Advocates Group if you have any questions!
Summary of a Will and its Benefits
It is recommended that everyone has a will, as it is one of the most important aspects of an estate. A will (or a testamentary will) is a written document that concerns the distribution of your assets. The will only goes into effect once you have died – hence the testamentary aspect of it. Creating a will is really beneficial as you get to decide how your assets are divided and to whom they should be distributed to. Furthermore, if parents have children who are considered minors in California, they can designate a guardian for their children. When you have a will, you must name a person as your executor, who will be in charge of the distribution of assets and other matters relating to the will once you have died. However, as mentioned above, a will is not taken into consideration while you are alive. Moreover, a will is subject to probate court, which will require your beneficiaries and living family members to go through a court process.
A Living Trust
If you would like to amend a trust and have access to the trust while you are alive, a living trust is a popular option. There are different kinds of trusts, but this article will discuss revocable trusts that can be changed during your lifetime. A trust holds assets and you can assign a trustee to oversee the trust. The person who receives the assets or the income from the trust is called the beneficiary. Some of the biggest differences between a living trust and a will is that the former does not require witnesses to make it official and it also is not subject to probate court. Therefore, after your death, the beneficiary does not have to go through court in order to receive the assets – it is a given deal.
