The recent worldwide pandemic has forced us all to rethink our mortality. Have you considered what would happen to your family or dependents if you got sick and passed away?
If you haven’t given it much thought, then you’re in good company.
About 60% of Americans haven’t thought about creating a will or trust. They don’t have any end-of-life plans. They also likely don’t know the difference between a will and a trust.
Don’t leave your loved ones scrambling amidst their grief if you pass! Instead, consider getting informed and creating a plan for the inevitable. Read on to learn more about estate planning and how to go about it.
What is a Will?
So, what exactly is a will? Wills are legal documents that you create to make your wishes clear in case you pass on. There are several types of wills including:
- Living wills
- Simple wills
- Joint wills
- Oral wills
You should use a will to help name who you want your assets to go. You can also use the document to outline your end-of-life plan. If you have children or pets, then you can list preferred guardians on your will, too.
After you’ve written your will, you’ll want to legalize it. In most states, that means getting it notarized and signed by witnesses. Then, once you pass on, your loved ones can rely on your will to carry out your final wishes.
What’s a Trust?
Trusts are like wills because they help distribute your wealth and assets. A living trust, though, goes into play before you pass on.
It’s also not a document but a relationship between you and a trustee. Once you set up a trust, you no longer control it. The trustee that you give control to will become the manager of your estate as outlined in the trust.
Will Vs Trust: Estate Planning Made Easy
Both wills and trusts are valuable ways to help secure future generations. You worked hard for what you have, so you deserve to pass it on to whomever you wish.
Trusts can’t get contested, while wills can. If you believe your loved one got involved with writing a will against their wishes, then you need help. Get a probate attorney as soon as you can to settle any will disputes.
Get Help Navigating the Difference Between a Will and a Trust
Both wills and trusts are estate planning tools. They help distribute your important assets and wealth to your loved ones. The main difference between a will and a trust, though, is the timing.
Trusts are active from the day they’re created. Wills won’t become active until after you pass. If you need help navigating the many differences, then we recommend speaking to a lawyer who can help.
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