Website design By BotEap.comBoth legal documents offer a way to distribute estate assets when a person dies, but each is different in a variety of ways.

Website design By BotEap.comwills

Website design By BotEap.comWith a will, it is cheaper to prepare but can be expensive to probate. In many jurisdictions, according to probate law, this is a legally binding document that will allow you to give your assets to a designated beneficiary or beneficiaries. Unfortunately, this usually doesn’t happen until the person in the will dies. A probate executor carries out the distribution of his estate. After the creator dies, the will must go through the estate. During probate, the court will decide if the will is valid. The court will then supervise the distribution of the assets. This can be an expensive process because the assets may be subject to estate taxes. When this is the case, the services of a probate attorney may be required.

Website design By BotEap.comWith a will, one of the drawbacks is that they become public record after the creator’s death, so everything about the will is public knowledge. To manage the distribution of the assets there will be a guardianship or a power of attorney.

Website design By BotEap.comTrusts

Website design By BotEap.comSetting up a trust is more expensive, but when there is a trust, it will usually allow the beneficiaries to avoid probate costs. After you have a written trust, it can take effect at any time during a person’s lifetime by using a settlor to transfer assets to the trustee to hold for the beneficiaries. When the creator dies, succession is prevented. This is because the assets were transferred during the settlor’s lifetime. The trust will continue to function even after the settlor’s death.

Website design By BotEap.comWith a trust, you will generally remain private and allow the beneficiaries of the trust to keep the specific terms of the trust confidential. In general, having a trust can provide more tax benefits. In some jurisdictions, they will allow a certain amount of the trust’s assets to be transferred to the beneficiaries without requiring them to pay gift and estate taxes. Depending on applicable trust laws, the tax benefits available will vary from jurisdiction to jurisdiction.

Website design By BotEap.comWhen administering a trust, it can be done by either a trustee or a settlor, but it will depend on how the trust has been set up. If the settlor manages the trust, they will usually specify who will manage it after they die.

Website design By BotEap.comIn conclusion

Website design By BotEap.comLooking at all the facts, it seems that it is better if a trust is established to distribute the assets rather than using a will. If you’re not sure, talk to an estate attorney for legal advice on which one to set for your particular situation.