Your family’s security is a top priority, but many times one of the most important elements of protecting your family is putting measures into place before anything happens. If you have not planned in advance for your passing by integrating a will and/or trust in Atlanta, you could be leaving a mess behind for your loved ones in the aftermath.
What is the difference between a will and a trust?
Both a will and a trust in Atlanta are vehicles that you can use to ensure that after you pass away, your estate is executed as you’ve intended it to be. Here is a quick overview of both to give you a better understanding on how they work.
Will in Atlanta
A will outlines what would happen to your estate, including property, cash and assets, after your passing. When you die, a will identifies a representative who has the legal authority to execute your wishes (commonly identified as an Executor of the Estate). Wills can be modified and changed at any time and are rather common for preplanning.
Revocable Trust in Atlanta
Another method that you can implement to protect your estate after your passing is by creating something called a revocable trust (these are also sometimes referred to as vivos trust). This type of trust allows the placement of property and other assets in it, which can be distributed to the recipients (also called beneficiaries), during or after your lifetime.
While you are alive, you retain ownership and full control of this revocable trust in Atlanta. However, the title to your property would be held by the heir that you’ve assigned ownership to in the event of your passing. From a taxation standpoint, you are still considered the owner because you retain control; but you can change the beneficiary at any time.
Irrevocable Trust in Atlanta
You can also consider the option of creating an irrevocable trust in Atlanta. This type of trust transfers the ownership of the assets controlled by the trust directly to your assigned beneficiaries. Doing so also means that you are no longer considered the owner of these assets, and you also cannot update or amend this type of a trust.
The primary benefit of this type of a trust in Atlanta is that it eliminates the value of any property or assets contained within, which means none of it is then taxed with estate tax upon your passing. What’s more, this type of trust is considered ironclad because it cannot be touched by creditors.
One final note to consider on trusts in Atlanta is that unlike wills, they are not considered public record and do not have a probate period. This adds a sense of privacy to the trust and for its beneficiaries when planning your estate in Atlanta.
Plan in Advance
Wills and trusts are complex tools that you can use to protect your assets, reduce tax liability and designate the distribution of your wealth after your passing. They are excellent considerations for wealth and asset protection that shouldn’t be overlooked. Our law firm has vast experience helping our clients determine the best asset protection for their family. Give us a call today to discuss your situation.