Will and Trust

Do I need both a Will and a Trust?

It depends on your individual circumstances and estate planning goals. Wills and trusts serve different purposes, and some individuals may benefit from having both. A will is essential for naming guardians for minor children, appointing an executor, and specifying how assets should be distributed. Trusts offer benefits such as avoiding probate, maintaining privacy, and providing for more detailed asset management and distribution instructions.

Which assets can be included in a Trust?

Virtually any type of asset can be included in a trust, including cash, real estate, investments, business interests, life insurance policies, and personal property. The trustor can transfer assets into the trust during their lifetime or specify that certain assets should be transferred into the trust upon their death.

Can I change or revoke a Will or Trust?

Yes, both wills and trusts can typically be changed or revoked during the trustor’s lifetime. A will can be updated through the execution of a new will or through a codicil (amendment), while a trust can be amended or revoked through a trust amendment or restatement. It is essential to follow legal formalities when making changes to ensure their validity.

What happens if I die without a Will or Trust?

If you die without a will or trust, your assets will be distributed according to the intestacy laws of your state. These laws dictate how assets are distributed among surviving relatives, which may not align with your preferences. Creating a will or trust allows you to specify how your assets should be distributed and to whom.

How much does it cost to create a Will or Trust?

The cost of creating a will or trust can vary depending on factors such as the complexity of the estate, the services of legal professionals, and any additional estate planning documents required. Generally, wills are less expensive to create than trusts, but the potential savings from avoiding probate may outweigh the initial costs of establishing a trust.

Will and Trust are estate planning tools used to distribute assets and property after a person’s death, but they have distinct differences. A legal document that specifies how a person’s assets and property should be distributed after their death is known as a Will, whereas a legal arrangement in which one party (the trustor or settlor) transfers ownership of assets to another party (the trustee) to hold and manage for the benefit of a third party (the beneficiary) is known as a Trust.