When planning for the future, it is important to consider what will happen to your possessions and wealth after you die. Wills and trusts are two commonly used estate planning tools. While they may look similar, they serve different purposes and have different legal implications.

In this blog we examine the differences between wills and trusts and help you decide which option might be right for you.

What is a will?

A will is a legal document that sets out the division of property and assets after death. She can also appoint a guardian for minor children and formulate other wishes, such as organizing a funeral.

For a will to be valid, it must meet certain legal requirements, such as: B. Signing in front of witnesses. Remember that wills are subject to probate, a court-supervised process that ensures the validity of the will and the fulfillment of the will of the deceased.

The process can take several months and can be expensive, as the executor (the person responsible for fulfilling the wishes of the deceased) may need to hire a lawyer and other professionals to help with the process.

What is trust?

A trust is a legal arrangement whereby you transfer ownership of your property and assets to a trustee who then manages those assets on behalf of named beneficiaries.

Trusts may be revocable (meaning you can change or cancel the terms at any time) or irrevocable (meaning you cannot change or cancel the terms once they are set).

Trusts can have several advantages over wills, including: Avoidance of a will: Because assets are held in a trust, they are not inherited when you die.

This can save your beneficiaries time and money. Which option suits you? The decision between a will and a trust depends on your personal situation and goals. If you have relatively large assets and have no interest in inheritance or asset protection, a will may suffice for your needs.

However, if you have complex assets, want more control over their distribution, or want to avoid inheritance, a trust may be a better option. It is important to work with an experienced estate planning attorney to ensure your wishes are properly documented and your assets protected.

They can help you determine which option is best for your particular situation and guide you through the process of creating a legal will or trust.

In summary, wills and trusts are important tools in estate planning, but they serve different purposes and have different legal implications. Understanding the differences between the two options can help you make an informed decision about which one is best for you and your family.