Question By: A will and a trust are both legal documents that allow an individual to transfer their assets to their beneficiaries after their death. However, they have different functions and purposes.
A will is a document that outlines an individual's wishes for the distribution of their assets after their death. It is a straightforward document that indicates who should receive which assets, and it also names an executor who will manage the distribution of the assets. A will only goes into effect after the individual's death, and it can be changed or modified at any time during the individual's lifetime.
A trust, on the other hand, is a legal arrangement in which a trustee holds and manages assets on behalf of a beneficiary or beneficiaries. There are many different types of trusts, including revocable trusts, which can be changed or dissolved by the grantor during their lifetime, and irrevocable trusts, which cannot be changed or dissolved once they have been established.
One of the main benefits of a trust is that it can help avoid the probate process, which can be lengthy and costly. When an individual dies, their assets go through the probate process, which is a court-supervised process that ensures the individual's debts are paid and their assets are distributed to their beneficiaries. However, a trust does not go through the probate process, and the assets are distributed to the beneficiaries according to the terms of the trust.
In summary, a will is a straightforward document that outlines an individual's wishes for the distribution of their assets after their death, while a trust is a legal entity that can manage an individual's assets during their lifetime and after their death. Both documents have their own unique purposes, and the choice between a will and a trust will depend on an individual's specific needs and goals. It is always advisable to consult with an attorney or financial advisor to determine which document is best suited for your individual needs.
It is advisable to consult with an attorney who specializes in estate planning to determine the best course of action for your specific needs and circumstances.
The process is never easy, but The Bruning & Associates team are committed to easing the challenges and resolving disputes through the most efficient, effective strategies. They will advise you and protect your rights.
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