What are the differences between a Will and a Living Trust?
When it comes to estate planning, two common documents that people often consider are a Will and a Living Trust. Although they may seem similar, these two documents have significant differences that can affect how your assets are distributed after you pass away.
In this blog post, we’ll take a closer look at the differences between a Will and a Living Trust and help you understand which document might be the right choice for your estate planning needs.
What is a Will?
A Will, also known as a Last Will and Testament, is a legal document that outlines your wishes for how your assets should be distributed after you pass away. Your Will can also name an executor who will be responsible for managing your estate and ensuring that your wishes are carried out.
One of the key advantages of a Will is that it allows you to name guardians for your minor children. This can be especially important if you have young children who would need someone to care for them if you pass away unexpectedly.
What is a Living Trust?
A Living Trust, also known as a Revocable Trust or Inter Vivos Trust, is a legal document that allows you to transfer ownership of your assets to a trust during your lifetime. You can name yourself as the trustee, giving you control over the assets while you’re alive. After you pass away, the assets are distributed to your beneficiaries according to your wishes.
One of the key advantages of a Living Trust is that it can help you avoid probate, which is the legal process that takes place after someone passes away. Probate can be time-consuming and expensive, and it can also be a public process that exposes your estate to scrutiny.
What are the differences between a Will and a Living Trust?
There are several key differences between a Will and a Living Trust, including:
- Probate: As mentioned, a Living Trust can help you avoid probate, whereas a Will must go through probate. This can save time and money for your beneficiaries and ensure that your wishes are carried out more quickly.
- Privacy: Because probate is a public process, your Will becomes part of the public record. A Living Trust, on the other hand, is a private document that is not part of the public record.
- Control: With a Will, you retain control over your assets during your lifetime, but after you pass away, your executor is responsible for managing your estate. With a Living Trust, you can continue to control your assets during your lifetime and ensure that they are distributed according to your wishes after you pass away.
- Flexibility: A Living Trust can be more flexible than a Will because it can be changed or updated during your lifetime. With a Will, you typically need to create a new document if you want to make changes.
In conclusion, a Will and a Living Trust are both important estate planning documents that serve different purposes. Understanding the differences between these two documents can help you make an informed decision about which one is right for your situation.
At We The People, we offer several affordable estate planning package options. Click here to navigate to our Wills & Living Trusts page to learn more.
Disclaimer: This content is for informational pruposes only and should not be considered legal advice. Consult with a licensed and qualified attorney for advice specific to your situation.
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