After deciding to create an estate plan, it’s important to know the proper information before finalizing your decision. The main question you’ll want to ask yourself is: should I utilize a trust or a will to protect my assets after my passing? You may not have the answer right now, but with the information provided in this video, you may notice the advantages of crafting a trust for your estate plan and the differences between a trust and a will.
A trust is a legal arrangement between a “trustee”, or the person selected to oversee your property and assets, and a “grantor”, the creator of the trust, to ensure the grantor’s assets are distributed to the selected beneficiaries correctly. Beneficiaries are the people, typically family members, who receive your assets after your passing. The main difference between a will and a trust is the involvement of the courts. A will is a legal document, presented to the court, that lists your assets and who receives them, as well as their share, at your time of death.
Assets don’t just refer to money, it can be your car, house, or even a particular piece of furniture. There is no limit to the type of asset or the number of assets you wish to distribute. In this legal agreement, it is important to list everything you can in your trust to make sure your assets are divided without issue.
Another important part of creating a trust agreement is deciding the allocation of assets your beneficiaries will receive. This is typically used with financial assets. You must decide who your beneficiaries are and what share they will receive after your passing.
The trustee’s job is to manage any assets named on the grantor’s estate plan and make sure they are distributed correctly to third-party beneficiaries according to the grantor’s wishes.
With a will, your assets will have to go through probate, costing you and your family more time and money before they can receive their share. Probate is a public trial, meaning anyone can view how your estate’s assets are divided.
A trust and a will can seem similar at face value, but it’s important to note that there is much more freedom and choice associated with trusts over wills. With trusts, you can make sure your beneficiaries are taken care of by someone you trust.
To gain a better understanding of the differences between a trust and a will, call Ball Morse Lowe today at 405.701.5355 or email clientintake@bml.law. We look forward to hearing from you.