Wills and trusts are both legal instruments that you can use to pass your estate to your heirs depending on your wishes. But they are very different, and a good place to start when determining how you would like to pass down your estate.

They have different functions and features that might appeal to different people depending on what they want to achieve and the size of their estate.

• A Will:
  The will or your last will and testament is simply a legal document that highlights your estate and how you would want it distributed after your death. It includes your physical properties (cars, house and even pets), and financial assets like the investment accounts, stocks and money in the account.

• A Trust:
  There are different types of trusts, such as a discretionary trust, a life interest trust and a bare trust. But the most common one is the living trust, which is an arrangement that involves selecting a trustee who manages your assets for your beneficiaries. The assets are transferred into a trust, making you the trust owner while the trustee oversees them.

There are several reasons why you might consider going for a trust over a will. Some of them include:

• To ensure family members don’t squander their inheritance
• Reduce tax liabilities for care home fees
• Prevent assets from being dispersed over future decades

Differences Between A Will And A Trust

Before you can have a discussion with the lawyer for preparing estate planning documents, it’s important to consider the differences between a will and trust to identify the one that best serves your needs and interests.

• Timing:
  One of the key differences between a will and a trust is when they kick in. A will only kicks in after you pass away. But if you choose to go with a living trust, it takes effect as soon as you create and fund it, giving you an opportunity to see how everything works out.
• Probate:
  Most of the assets listed in the will have to go through probate in Watertown, NY. However, if you have a living trust, your assets can skip probate, which allows your heirs to start enjoying the benefits from such assets sooner.
• Privacy:
  Wills become public record because of the probate process. But a trust remains private. This makes trusts an appealing option if you want to keep things silent and private and want to protect the identity of the heirs or the details of the property.
• Maintenance:
  You only need to update your will once every few years or when there is a significant change in your estate, which makes it more affordable. But living trusts require updates to include new assets when you acquire them, and you also need to consider the trustee.

Considering these factors, you should consider a trust if you want to avoid probate and desire privacy and a will if you want the heirs to take full ownership of the respective assets once you’re gone.

Don’t let sudden events like your passing unravel your family. We can help you plan your estate for a peaceful handover.

It is your dream for your family to live in harmony and comfort, and achieving this dream comes with a lifetime of work and commitment.  But what you worked so hard for your family could be the one thing that tears them apart if you don’t have a proper estate plan in place.

At Hobaica Law Office in Watertown, NY, we help families plan for the unexpected. Our goal is to ensure that you can take care of your family and children even when you’re not physically there. Call us today at (315) 627-2800 to speak to estate lawyers near me who will help you get started on your estate planning.