
Living Trusts vs. Wills: What’s the Difference?
If you are researching information on estate planning, you may have some questions about the difference between Living Trusts and Wills. How can you know which is the right one for your situation--a Will or a Living Trust? How does each address the passing of assets? There are advantages and disadvantages to both that you should know about in order to make a decision about the one you need.
We advise you to work with an estate planning attorney who can explain the differences and recommend the best solution. The Doyle Law Offices work with families in the process of estate planning to make the right choices for their situations. Contact us for more information and advice.
What is a Will?
A Will is a legal document that outlines your wishes regarding the distribution of your property and the care of any minor children. Wills can vary in their effectiveness, depending on the type. Failure to prepare a Will leaves decisions about your estate in the hands of judges or state officials that may not align with your wishes. You can prepare a valid Will yourself. Just be sure to have the document witnessed so as to avoid any challenges later. To be certain that everything is in order, consider seeing an attorney who specializes in estates. A Will:- Doesn’t own property
- Goes through probate
- Doesn’t stipulate inheritance specifics
- Names beneficiaries
- Names guardians for minor children
What is a Living Trust?
A Living Trust is a legal document that is created during an individual’s lifetime where a designated person, called the trustee, is given responsibility for managing the individual’s assets that are owned by the Trust. The person (or entity) who creates the trust is the “grantor” or “settlor.” The trustee manages the assets for the benefit of the eventual beneficiary and holds legal possession of assets and property that go into the Trust. After creating a Trust, you must fund it by transferring assets to it. There are two types of Trusts--Irrevocable and Revocable. With a Revocable Trust, the grantor can designate himself or herself as the trustee and take control of the assets that are in the Trust. With an Irrevocable Trust, the grantor gives up certain rights to control the assets in the Trust. A Living Trust may be somewhat more complicated than a Will, but it can provide some great benefits. A Trust offers greater control over when and how your assets are distributed and can be customized to your individual situation. The biggest benefit, and the reason most people create a Living Trust, is to allow for easy transfer of the assets by minimizing or avoiding the sometimes complex and expensive legal process of probate. A Living Trust:- Owns property and assets
- Avoids probate
- Details stipulations on inheritance
- Allows customization by creating either irrevocable or revocable trusts