Anyone who has ever watched a television show we’re or seen a movie in which the main character dies, knows that a will is a document in which a person states which of their relatives or friends will get the deceased’s money. A trust is often thought of as something the upper classes set up for their children to live off of.
In reality, A trust is a financial arrangement in which a trustor gives a trustee the authority to hold property or assets for a beneficiary. There are several different kinds of trusts. They are generally put together to help people avoid paying excessive taxes or doing excessive paperwork. A person will sometimes have revocable living trusts in addition to a will.
The Difference Between a Will and a Living Trust
Trusts and wills allow a person to document who they want their property to go to when they are no longer around. if you don’t have one is always advisable to make one, because if you do not, it may cause extra stress on your relatives after you pass away, and your assets may fall into the hands of someone you would rather they did not.
Both wills and trusts will allow you to bequeath money and property to relatives and friends. You will be able to make revisions to either of these kinds of documents.
A trust strictly deals with money. In order to do things like name a guardian for your children and instruct how your debts should be paid, you must have a will. You can also name an Executor in your will. Wills are easier to create than trusts.
 Living trusts are generally created to dodge probate court, and they tend to be more detailed than wills. When you put your final signature on your will, you must have witnesses. You will not need witnesses for a trust. Instead, you can simply go to a notary public.
Where the details of a will may be shared with the public, a trust is private. It is generally better to use a trust if you want to leave something to someone who is under 18.
When money is put into a trust, you can protect the funds from a conservatorship. This will protect a beneficiary from unscrupulous people attempting to get ahold of their money by having them declared mentally or physically incompetent.
Why a Trust May Be a Good Choice
When you are trying to decide if you should leave money to a person in your will or create a trust, you should know that a will must go through probate court after you die. Probate is designed to make sure that everyone who has an interest in an estate gets the money they are supposed to.
A person’s estate is comprised of their assets after they die. The process takes several months. First, the executor of the estate has to file paperwork and have that paperwork approved. Then they have to put an ad in the newspaper announcing that the will is in probate and notify everyone who is mentioned in the will.
According to probate lawyer David Howard Goldberg, there are certain kinds of properties that are exempt from the probate court, and one of those exemptions is for trusts. A person receiving a trust will get their money much faster.
A good probate attorney can advise you as to which of these options is right for you. You have worked hard for everything you have, and you want to make sure that your money goes to the right people after you are gone.
Authoritative Sources:
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