Everyone is different, as a result, every estate plan will be different. Different people will want to create different documents in order to create an estate plan that best suits their individual needs. Two documents you may want to create include a will and various trusts. Read on to learn what these documents entail and the differences between them.
What is a Will?
A will is a legal document that declares your wishes regarding your estate after your passing. Knowing that your estate will be handled the way you want can give you great peace of mind. Additionally, it will save your loved ones from any undue stress or tension regarding your estate since everything will be taken care of ahead of time. Some of the assets you may include in your will may be real estate, bank accounts, securities, and items of personality. You can also include gifts for your friends and family members, be it a letter you’ve written, or a favorite photograph.
What is a Trust?
A trust is a legal document that is used to manage certain assets.
Below, you will find a breakdown of who is involved in a trust:
- Trustor: the person who creates the trust
- Beneficiary: the person who will receive the assets allocated in the trust
- Trustee: the third party assigned to manage the assets on behalf of the beneficiary
The two main types of trusts are:
- Revocable Living Trusts: can be altered and revoked by the trustor at any point, for any reason
- Irrevocable Trusts: can only be modified with permission from the beneficiary
Some of the trusts you can create include:
- Special Needs Trusts: can be created to ensure that special needs family members are taken care of financially
- Charitable Trusts: allows the trustor to continue donating to charity after his or her passing
Which is Better?
There is no right or wrong when it comes to wills vs trusts. Each document does different things and can play a large role in your estate plan. A skilled attorney can help you create a comprehensive estate plan that meets your needs.
If you have any questions or concerns regarding your estate plans, contact our firm today to speak with an experienced and knowledgeable attorney.
Contact our Firm
Sometimes, divorce, family, and estate matters are difficult to navigate. Fortunately, they do not have to be with the assistance of a compassionate, knowledgeable attorney who is willing to guide you every step of the way. If you need a seasoned firm to help you with any divorce, family or estate-related matter, please do not hesitate to contact Collis, Griffor & Hendra today to schedule a consultation.