What Are The Differences Between Wills And Trusts?

There are many different tools you can use to plan for your estate. Of these, wills and trusts are two of the most important. Many people wonder if they should draft a will or a trust, or both, when planning an estate. Wills and trusts both distribute property to heirs after someone drafts a document and names beneficiaries. However, wills and trusts do have important differences, and their own advantages and disadvantages. Below, our Daytona Beach estate planning lawyer explains what these are.

When They Become Effective 

Wills only take effect once the testator, or person writing the will, passes away. After a person passes away, the property within the document will be distributed according to the testator’s wishes and guardians of minor children will be designated. On the other hand, trusts become effective as soon as they are drafted and signed. Grantors, or people who draft trusts, can then manage the property within these documents during their lifetime.

Understanding when trusts and wills become effective is critical. It ensures that you can manage your property as you wish during your lifetime and after you pass away.

Probate 

Probate is a court-supervised process of administering a person’s estate and distributing their assets after they pass away. Probate is not inherently bad but it can be time-consuming, expensive, and burdensome to loved ones after you pass away. One of the first steps in probate is proving, or validating, the will. As such, a will alone does not help your loved ones avoid probate.

Trusts, on the other hand, are separate legal entities from those who create them and their estate. As such, any property in a trust is also separate from the grantor and is not subject to probate.

Confidentiality 

Due to the fact that wills are subject to the probate process, they also become a matter of public record. This means that anyone with some know-how can look up the details of your estate and the distribution of property.

Trusts remain confidential, as they do not enter probate. This can help keep the details of your estate, and property distribution, confidential.

Handling Affairs During Incapacitation 

Your estate plan does not only protect your family members after you pass away. It can help you and your loved ones during your lifetime, as well. Wills cannot designate individuals who will manage your affairs if you become incapacitated. A trust, on the other hand, can name a successor trustee who will take over management of the trust if you are unable to.

Likewise, a trust cannot name a guardian for your minor children if you become incapacitated and cannot care for them yourself. However, a will can designate a guardian for your children.

Our Estate Planning Lawyer in Daytona Beach Can Execute Your Documents 

There are many differences between will and trusts and it may not always be easy to determine which one is right for you. At Bundza & Rodriguez, our Daytona Beach estate planning lawyer can review the facts of your case and draft the documents you need to ensure they are enforced and that your wishes are respected. Call us now at 386-252-5170 or chat with us online to schedule a consultation and to get the legal help you need.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html