Trusts Vs. Wills: What Is Right For You?
At Telpner Peterson Law Firm, LLP, we understand that making decisions about your estate planning can be a daunting task. There are many factors to consider, such as your family’s needs, assets and goals.
One of the most important decisions you will make is whether to create a will or a trust. Both wills and trusts are legal documents that can help you distribute your assets after you die. However, they have different advantages and disadvantages.
Starting A Will
A will is a legal document that specifies who will inherit your assets after you die. It also allows you to appoint a guardian for your minor children and name an executor who will fulfill your wishes.
The main advantage of a will is that it is relatively simple to create. You can do it yourself or with the help of an attorney.
However, there are also some disadvantages to wills. For example, if your will is not properly executed, it may not be valid. Additionally, if your circumstances change after you create your will, you may need to update it. When you work with a skilled attorney, you have the support you need to avoid some of the common mistakes that happen from trying to do it on your own.
Utilizing Trusts In An Estate Plan
A trust is a legal arrangement allowing you to control how your assets are distributed during your lifetime and after death. Trusts can be used for a variety of purposes, such as providing for your family, avoiding probate or minimizing taxes.
The main advantage of a trust is that it gives you more control over your assets than a will. You can specify how your assets will be managed and distributed, and you can change your trust at any time.
However, trusts can also be more complex than wills. They may require the services of an attorney to create and maintain.
Different Types Of Trusts
There are many types of trusts, each with advantages and disadvantages. Some of the most common types of trusts include:
- Revocable trusts: The grantor (the person who creates the trust) can change or revoke these trusts at any time.
- Irrevocable trusts: The grantor cannot change or revoke these trusts.
- Living trusts: These trusts are created while the grantor is still alive.
- Testamentary trusts: These trusts are created in a will and take effect after the grantor’s death.
When Do I Need A Trust Vs. A Will?
Wills and trusts can both be valuable estate planning tools. The best choice for you will depend on your individual circumstances and goals.
A will may be a good option if you are looking for a straightforward way to distribute your assets after you die. However, if you want more control over your assets and want to avoid probate, a trust may be a better choice.
If you are considering creating a will or a trust, we encourage you to contact us to discuss your options. We will work with you to create a plan that meets your individual needs and goals.