Did you know that less than half of the adults in the United States of America have a living will or living trust in place? There are a number of things that point to the difference between a trust and a will, but each has its benefits and you owe it to yourself to consider each for your situation.
Knowing what is a will and what is a trust will help you know which is a better fit for you as well as your family members. If you’re confused on which is right when looking at a trust vs will then you’ve come to the right place.
Keep reading this article to learn about the differences between the two options and find which is right for you.
What Is a Will?
A big difference when comparing a will to a trust is when they come into effect. A will won’t go into effect until after your death while a living trust is working prior to passing away. A will allows you to move forward with the process of naming beneficiaries while also picking guardians for your children and pets should you have an untimely death.
They’re also great because they give you a way to designate where your assets will go once you’ve moved on from this life. You’ll get to choose friends and family members to inherit these assets from you. Another important thing that you can do with a will is to designate your final arrangements for your death.
What Is a Trust?
A trust is a more complicated option than going with a will but it is still a great option for you to consider. Trusts are great for someone that wants more control over their assets as well as determining when and how they get distributed. They work by listing the assets that you own and that you want to be included in the trust.
There are also a variety of different types of trusts for you to consider. This means that there is likely to be a perfect option for your wants and needs when it comes to setting up a trust. Keep in mind that you’re the person that is funding the trust since you’re providing the assets that are contained within it. This will prevent the need for getting a probate lawyer.
Avoiding probate is a huge benefit for many people and it is often what sways them towards going with a trust rather than a will when setting up their estate. This is worth the complex nature of setting up a trust compared to setting up a will.
Now You Know the Difference Between a Trust and a Will
Knowing the difference between a trust and a will goes a long way towards helping you set up your estate and decide on which is the better option for your needs. A will is easier to set up but it doesn’t get activated until you pass away. A trust is more complicated but it allows greater control over your assets and it avoids probate.
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