Will vs Trust: What’s The Difference
Setting your finances up to prepare for your death isn’t always something that people want to do. It can be difficult thinking about your mortality, your possessions, and how they deserve to be dealt with when you pass.
It’s important to start thinking about these issues as soon as you can, though, because a sudden accident could leave your family in a difficult situation. Distributing money, especially significant amounts, often makes the loss of a loved one a lot more stressful.
Not only is it challenging to do clerical thinking while you’re in grief, but some people might feel like they were not given what they were owed. When you haven’t put your stamp on those decisions in advance, there’s no saying whether what you leave behind could cause division in the family.
We’re going to get you started today by looking at the difference between a will vs trust.
Will vs Trust: How Does Each Work?
Wills and trusts are often confused for one another. Both of them have to do with what happens to your possessions after you pass away, but they have different functions.
What Does a Will Do?
A will is a document that lists how your possessions will be distributed after you die. This makes the process of placing items a lot easier for family members and it ensures that your things go to the right places.
You can select who you’d like to carry out your wishes, whether that’s a family member or someone else.
Additionally, a will is where parents can select a guardian for their children in the event that they pass away. If there’s no selection on this, the child could be dealt with primarily by the court system with family decisions more difficult to come into the picture.
What Does a Trust Do?
A trust differs from a will in that it becomes effective when you set it in place while you’re still alive. A “living trust” is one that manages your property while you’re alive and prevents most of the legal stress in the event that you become incapacitated.
If you go into a coma, for example, steps would be in place to pass your things into the care of your chosen recipient. That way, there’s no need for your loved ones to go to court to establish their stake in the things you own and how they should be managed.
Another benefit of a trust is that your personal affairs don’t get run through the court system. Wills often lead to a person’s things and affairs being aired in court as they’re deliberated over. If you’re a person who’s interested in keeping things private, a revocable trust can pass your things to loved ones without them needing to go through expensive court processes.
Need Help Setting Things Up?
If you’re debating over choosing a will vs trust, you’ll want some help with the process. We’re here to provide you with whatever you need to prepare your property to be distributed.
Contact us for more information or to start writing up a document as soon as you’d like.