Estate Planning Package

A will is a legal document that outlines how you want your assets to be distributed after your death. It allows you to name beneficiaries, appoint an executor to carry out your wishes, and designate guardians for minor children, among other things. A will only takes effect upon your death and needs to go through probate.

A trust is a legal arrangement where you transfer ownership of your assets to a trustee, who holds and manages the assets for the benefit of the beneficiaries. Unlike a will, a trust can take effect during your lifetime, allowing for management of assets before and after death and can help avoid probate.

• Will: A will specifies how assets are distributed after your death, but it must go through probate, a court process that can take time and may involve fees.
• Trust: A trust transfers ownership of assets during your lifetime and can avoid probate. Trusts can also offer more control over the distribution of assets and provide protections for minor children, beneficiaries with special needs, or those who need help managing their inheritance.

Probate is the legal process by which a court validates a will, settles the estate, and ensures debts are paid. It can be time-consuming, costly, and public. With a trust, you can often avoid probate, as assets in the trust pass directly to beneficiaries.

While both a will and a trust serve different purposes, having both can provide comprehensive estate planning. A will can cover any assets that aren’t included in the trust, and a trust allows for probate avoidance, while also providing more control over your assets. Many people use a combination of both for maximum benefit.

Some of the key benefits of having a trust include:

• Avoiding probate: Assets in the trust pass outside of probate, which can save time and money.
• Asset protection: A trust can help protect assets from creditors, lawsuits, and divorce settlements in some cases.
• Privacy: Trusts are private documents, unlike wills, which become public during the probate process.
• Ongoing management: A trust can help manage assets for minors, beneficiaries with special needs, or those who are not capable of managing finances on their own.