Would a will or trust best benefit your estate?

| Apr 3, 2018 | Blog

Estate planning is a process to consider for anyone who has valuable assets or specific desires for who their belongings go to. With an effective estate plan in place, estate holders can have peace of mind knowing how their precious assets will be cared for after they are gone.

There are a few different elements to an estate plan for you to consider. When it comes to selecting a will or a trust, make sure that you keep these facts in mind.

Wills for general delegation

Wills are the more well-known option that estate holders may utilize. This document allows the estate holder to make a number of delegations. Along with denoting which parties receive what, the will-writer may also stipulate any requirements for release, as well as the power of attorney who will ensure the proper allocation of the estate.

After the legalization of the will, it becomes public record. Estate holders may still make changes to it; however, it is important that they denote the most current will clearly. Otherwise, the estate may be subject to intestate succession, where the court determines its distribution.

Trusts for complex estates

Trusts tend to be beneficial for those estate holders who have large estates or a variety of complex assets. A trust is somewhat like a separate account, so in many cases once an asset enters a trust, it becomes a separate entity from the estate itself. This may provide some tax benefits to the estate and the trust beneficiary. Also, it is important to note the different kinds of trusts and their properties, such as irrevocable trusts that cannot be changed. Another beneficial property of trusts is that they remain private and do not become public record.

By understanding the differences between wills and trusts, you can make an educated decision in regards to your estate. In some cases, it may be beneficial to have both. Take the time to evaluate your estate and the laws to make the best choice for you.