How Can Wills and Trust Be Beneficial for an Individual?
Wills and trust are essential for estate planning. But people wonder which one is better between wills and trust. A legal help firm advises individuals to create both wills and trust for better estate planning. Keep reading to find out the basic concept of a will and trust.
Wills
A will is a document that becomes effective only after the death of the creator.
- A will planning attorney will help you ensure that your assets get evenly distributed after your death.
- You can also ask your last will attorney to include directions for your funeral.
- You can consult a will trust attorney to include a trust for a particular beneficiary.
A will needs to be signed by the creator, and a witness needs to be present. The legal document needs to be submitted to the probate court after the demise of the creator. Only a designated executor can carry out the wishes specified in the will. A will is a public document under the records of the probate court. The probate court oversees any disputes regarding the execution of a will.
Trusts
A trust enables the transfer of assets from the owner to the trustee. The trust owner can set up terms for the management of assets and how the assets will be ultimately distributed. The trustee is required to handle the assets according to the terms of the trust document. All assets in the trust should be handled keeping in mind the best interest of the beneficiaries.
While will become effective after death, trusts become effective after the transfer of assets.
- You can consult a living trust attorney to create a living trust during your lifetime.
- You can also come across a will and testament lawyer who helps in setting up trusts after death. A testamentary trust is created as per the guidelines in the will of the decedent-grantor.
Revocable Trusts
A trust can be created to serve a variety of purposes both during the lifetime as well as the death of the grantor. While you are alive, you can create a revocable trust. A revocable trust attorney will help you amend the terms of the trust at any time. A revocable trust can also be terminated at any point.
The grantor of a revocable trust continues to be the owner of assets because of tax purposes. The trust document will include a successor trustee. The trustee will take over the assets after the death of the grantor. A trustee also becomes responsible for managing the trusts if the grantor becomes incapable of handling their assets.
Individuals can avoid the process of probate in a revocable trust. Therefore, assets will be transferred seamlessly while loved ones are mourning your death. However, the assets included in a revocable trust fall under the grantor’s taxable estate.
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