Wills and trusts are components of many estate plans, and each have advantages. For example, a will covers all of the property that is only in your name at your death. A will also allows you to name a guardian for your children and detail your wishes for your funeral.
However, there are a variety of things that a trust can do but a will cannot. Using trusts as a part of your estate plan can help you better protect your property and your loved ones, and you can use them alongside a will to create a more comprehensive plan.
A trust allows you to distribute your property at a variety of times.
While a will only comes into effect at your death, a trust can distribute your property at a variety of times. They can receive support from your estate during your life, at your death, or after your death at certain times of life depending on the terms of your trust.
Trusts can relieve the tax burden on your loved ones.
If you are concerned about the impact that estate taxes will have on the funds your loved ones receive, a trust can help you minimize the cost of those taxes.
A trust can maintain your privacy.
The probate process means that wills are overseen by the court, but a trust does not go through probate. This keeps the funds and assets distributed by the trust out of the public record.
A trust can protect your loved ones who receive disability support.
If you have loved ones who rely on government support, a trust could allow them to continue that support and still have the additional
A trust often works best in conjunction with a will. Discussing your goals with an experienced estate planning attorney can help you determine which documents can achieve your goals for the future and give you peace of mind today.