While you may have heard the terms “Will” and “Trust,” many people do not actually understand the differences between the two. However, if you are considering an estate plan, it is important to know more about each of these plans and which one can best protect your family and assets.
A Last Will and Testament
A Last Will and Testament is a document that directs the distribution of a person’s property and assets to their designated beneficiaries after they pass away. This document can also include directions related to the appointment of the executor of a Will, how to proceed with a funeral and burial, and guardians for minor children.
To create a valid Will, the document needs to be signed and witnessed according to the state’s laws and filed with the probate court in the proper jurisdiction. The document will also be publicly available.
A Trust
A trust is a legal arrangement that provides for the transfer of assets from the owner, also known as a trustor, to another individual or the trustee. This legal document sets the terms for distributions, including how the trustee needs to manage the assets and the ultimate disposition of the assets.
A trust goes into effect as soon as it is signed and allows individuals to transfer their property and other assets while they are still alive. Furthermore, assets and property in a trust will bypass the lengthy probate process, and the document’s details will remain private and only available to those involved.
Which Estate Planning Option Should You Choose?
A Will and a trust are legal estate planning documents that help individuals decide what to do with their property and assets before they pass away. These documents can provide peace of mind that children will be cared for if something happens.
While both a Will and a trust have pros and cons, a solid estate plan usually includes both a Will and a trust to ensure the estate is fully protected. Yet, if you want to know whether one option may be better for you, depending on your personal situation, consider discussing these plans with an experienced estate planning attorney. These legal professionals can not only determine which options better protect the value of your assets, but they can also help make sure that the intended benefits you want for your heirs are carried out.
Contact The CYA Law Firm and Go Over Your Estate Plan Today
If you are considering creating a Will or trust and need more information about these options and what they mean for you and your family, do not hesitate to seek legal help. The CYA Law Firm has years of experience with estate planning, business law, and asset protection for small businesses and individuals and is here to answer your questions.
If you would like to go over your estate planning options, contact The CYA Law Firm today to schedule a free consultation with Attorney Adalbert “AL” Martinez.