Protecting Your Assets: The Difference Between Trusts and Wills
When it comes to estate planning, many people confuse trusts and wills. While both are important tools for distributing your assets, they serve different purposes and have different advantages. Understanding the key differences between the two can help you decide which is best for your needs.
What is a Will?
A will is a legal document that outlines how you want your assets to be distributed after your death. It allows you to name guardians for minor children, designate beneficiaries, and specify how your estate should be divided. However, a will must go through probate, which is a lengthy and public process.
What is a Trust?
A trust, on the other hand, is a legal entity that holds assets for the benefit of designated beneficiaries. Unlike a will, a trust can be set up while you’re still alive and allows for the management and distribution of assets during your lifetime and after your death. One of the biggest advantages of a trust is that it avoids probate, making the distribution of assets faster and more private.
Key Differences Between Trusts and Wills
Probate: Wills require probate; trusts do not.
Privacy: A will becomes a public document once probated; a trust remains private.
Control: A trust allows for more control over how assets are distributed, both during life and after death.
Speed: Trusts can transfer assets immediately upon death, while wills may take months or longer to settle.
Why You Need Both
In many cases, having both a will and a trust is ideal. A will can cover anything not included in your trust, ensuring your estate is fully managed. A well-rounded estate plan ensures that your wishes are met, your family is protected, and your assets are passed down efficiently.
What Should You Do Now?
Schedule a free consultation with Asset Armor today to create a comprehensive estate plan that includes both trusts and wills, ensuring your assets are properly protected and distributed according to your wishes.