Will and Trust

Will vs. Trust: What’s the Difference, and Which One Do You Need?

1. Are you OK with the State deciding what happens to you and your possessions?

2. Should something happen to you, have you specified who will take care of your children?

3. If something happens to you, do you know who will make healthcare and life decisions for you?

4. Have you completed a HIPAA form so that select members of your family will have your medical info access?

5. Should you become incapacitated, have you identified who will handle your financial and legal affairs?

6. Have you specified how your estate will be distributed?

7. Do you want your family to go through the probate process at the time of one’s death?

8. Do you want to burden your heirs with a heavy estate tax burden while transferring your legacy?

What is a Will?

A will is a legal document that outlines your wishes for how your assets and property should be distributed after your death.
It can also address other important matters, such as naming guardians for minor children.

Key Features of a Will:

Takes Effect After Death: A will only becomes effective upon your passing and must go through probate (a court-supervised process) before your assets are distributed.
Covers a Broad Range of Assets: A will can address almost any asset, including personal belongings, real estate, and financial accounts.
Appoints an Executor: A will designates an executor (or personal representative) who will manage your estate, pay debts, and distribute assets according to your wishes.
Names Guardians: If you have minor children, a will allows you to name someone to care for them.

What is a Trust?

A Trust is a legal entity that holds and manages assets for the benefit of your chosen beneficiaries.
A Revocable Living Trust (RLT) is the most common type of trust, allowing you to retain control of your assets during your lifetime and specify how they should be distributed after your death.

Key Features of a Trust:

Takes Effect Immediately: A trust is active as soon as it’s created and funded, meaning it can manage your assets during your lifetime and after your death.
Avoids Probate: Assets in a trust bypass the probate process, ensuring faster and often more private distribution to your beneficiaries.
Provides Ongoing Management: A trust can specify how and when assets are distributed, which is especially useful for minor children, special needs beneficiaries, or complex estates.
Name a Trustee: A trust designates a trustee to manage the assets according to your instructions. You can act as your own trustee during your lifetime or appoint someone else.

Click here for more details: https://www.netlaw.com/