Most people do not understand the difference between wills and trusts. We work hard for our money and want control of it even after we die. Don’t be one of the people that doesn’t know the difference. Be in control of your wealth and how the inheritance is distributed by knowing the difference between wills and trusts.
5 Things a Will Does Not Control
For most people, they believe that a will controls all of their assets but that is not true. It can be confusing what assets are included in a will-based plan. To make it simple, wills only control assets in your name. It does not include:
- Employee benefits
- Life insurance
- Retirement accounts/pension plans
- Trust assets
A will does give you the control over who gets what when you die but a trust can protect you even more.
5 Benefits of a Living Trust
Many benefits are available when using a living trust and here are just five of them:
- Avoid probate – You are able to avoid your estate being decided in court. It is open to the public, can be costly and very time consuming.
- Control your incapacity wishes – If you were to become incapacitated, a living trust would include your guardian or conservator.
- Provide for spouse – You are able to provide for your spouse without being forced to disinherit your children.
- Save estate taxes – Using a living trust can save your inheritance from large estate taxes.
- Protect inheritance – A living trust also allows you to protect your children and grandchildren’s inheritance from creditors, spouses, divorce, courts and irresponsible spending.
A living trust also allows you to fund real estate, bank accounts, investment accounts, and intellectual property rights. Notes payable to you, your life insurance, business interests, oil and gas interests, and personal effects such as artwork, jewelry, collectibles and antiques can all be included in your trust.
Working closely with your estate planning attorney will insure that all of your assets are distributed the way you want them to after you pass. You want this done as cheaply and quickly as can responsibly be done. Call our office today and allow us to help you determine whether a will or trust would be best for your situation. We can help you determine which would benefit you and your loved ones the most. Call us today!