What You Need To Know About The Differences Between A Will And A Trust

By Author: Smith Clea
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A will and a trust are commonly confused as the same.

But they are very different legal documents that serve entirely different purposes.

Understanding the differences between the two can help you make better decisions.

It can help you in your estate planning as well as save you from unnecessary expenses in the long run.

Here’s what you need to know about the differences between a Will and a Trust.

Why both are necessary to any complete estate plan.

How Your Estate Plan Is Different from Your Will?

In short, your Will is what you want to be done with your stuff after you die.

It is used by executors or administrators to transfer assets from one person or entity (such as a bank account) to another.

The person who has legal power over your affairs when you are incapacitated is known as your guardian.

He uses it in conjunction with living wills and other documents to ensure that you’re properly cared for if something happens to you.

Wills can also help make sure any decisions you have made about end-of-life care are followed through.

If ...
... you don’t have a will, certain laws may take effect about your estate, leaving others to decide how best to disperse your belongings.

While will get more attention than they deserve during estate planning discussions, they are certainly useful tools that help make things easier on your loved ones.

Later on down the road should anything happen to you while alive or at death?

The Difference Between a Will and A Trust

In many instances, individuals will have both a will and a trust.

While these two documents have important differences, they also have similarities—and often work together.

It’s vital that you understand when you should use one instead of another.

Here are some things you need to know about wills vs trusts.

A will directs where your assets go after your death (as well as how your debts/liabilities are paid).

A trust holds and manages those assets for either one or many beneficiaries under directions in a separate document (the trust agreement).

When do I need a will? People create wills for various reasons. Sometimes it is to leave an inheritance according to their wishes.

Sometimes, it is because one has minor children who could potentially be left without parental care if something were to happen.

Why You Should Have Both a Will Aand A Trust?

A will is one of two legal documents you’ll need when it comes to estate planning, which is your plan for distributing assets after death.

A trust, meanwhile, is used when you’re not around.

A trust names a trustee who can be someone you choose or a professional—someone like an attorney or investment advisor.

A trustee will manage your financial affairs on your behalf. Both documents are irreplaceable parts of an estate plan, but each has its distinct purpose.

How Do I Make Sure My Wishes Are Followed After I Die?

When people die, there’s usually a Will of some sort that says who gets what.

Wills are easy enough to write yourself, but they’re also more easily contested than you might think.

If you have significant assets or if you have several kids from multiple marriages, creating trust is probably your best bet for making sure your wishes are carried out as closely as possible.

About Author

Clea Smith is a USA-based author on Legal issues related to estate planning, will & trust, business law, and elder law. Clea Smith does his best writing on these topics that help users to find the best solutions to their FAQ on estate planning, probate, Will vs Trust in Michigan, and more about legal family issues. The author can be reached through www.rochesterlawcenter.com

Clea Smith is a USA-based author on Legal issues related to estate planning, will & trust, business law, and elder law. Clea Smith does her best writing on these topics that help users to find the best solutions to their FAQ on estate planning, probate, living trust vs will and more about legal family issues. Author Clea Smith can be reached through rochesterlawcenter.com