A trust is another way to plan the distribution of your estate after your death. It should not be used instead of a will, and in fact many people will have both to serve different purposes. Our team is here to help you understand the differences between wills and trusts so you can fully understand your estate planning no matter how much you are leaving behind.
How is a Trust Different from a Will?
Both wills and trusts allow you to designate people to inherit your property, but a few distinct differences may influence you to choose one or another. A will allows you to make decisions about your medical treatment in the event that you are incapacitated while a trust is simply used for estate planning. A trust only covers property that is outlined in the document while a will covers all property in your name at the time of death. The court will oversee execution of the will, while trusts do not have to go through the court.
A trust will go into effect the moment it is signed while a will is only effective after you die. Each document is used for slightly different purposes, and the professionals at Holland Law can help you decipher your options and draft a living trust or will.
Benefits of a Trust
Although wills and trusts are used for similar purposes, trusts have a few benefits like:
Avoiding Probate:
Your family will not need to endure a long, costly court proceeding because a trust foregoes probate court and your assets are distributed immediately.
Maintaining Privacy:
Your trust will be kept private during the process and no aspects of your trust will become public record.
Reducing Taxes:
In certain situations, a trust can save a significant amount of money for married couples.
Protecting Your Beneficiaries:
When young children or teenagers are inheriting assets or money, your provisions can prevent them from using it immediately.
Keep in mind that a trust will not replace a will, and you can still outline a will for any property acquired after the trust is formed. A trust is somewhat complicated to create, so we suggest seeking the advice of a lawyer.
How to Create a Living Trust
In order to make a living trust, you must clearly outline your wishes for your property. Creating the trust document is the most complex part of the process. You must know who you will be distributing your assets to and any special circumstances that govern when or how they should receive your property. A trust typically governs the majority of your estate, so it is common to have help from a lawyer. After being signed in front of a notary public, your trust is legally binding.
Holland Law is Your Resource for Living Trusts
A living trust is yet another resource for you to clearly and efficiently state your final wishes. Our experienced staff can help you draft your living trust in a way that makes it easy for your loved ones to carry out your requests. We provide legal assistance to customers in Flagstaff, Prescott, Prescott Valley, Sedona, Cottonwood, Snowflake, White Mountains, Sholoh, and St. John's. Contact us today to get started.