You might be wondering if you should have a will when you start to think about your estate plan. A trust might be something you should consider. You might also be curious about the differences between trust and will.
This guide compares a trust and a will to help you plan your estate.
The basics of a will
You might start by reading about wills to learn more about the differences between trust and will. A will is a shorthand for “Last Will and Testimony.”
Wills are the most common tool for estate planning. They can be simple or complex. An attorney is a good idea when you are writing a will. A lawyer will help you make sure that your will is valid.
An attorney can help you decide what should be included and what its purpose is. A will is a document that outlines your wishes for your loved ones in the event of your death.
Here are the main ones that you may want to include in your will.
Names of your Beneficiaries
You first need to list the names of your beneficiaries. These are your beneficiaries. They will be the ones you wish to leave your assets to when you pass away.
How Much Asset Each Person Gets
You can also state who will receive your assets in your will. Each person can be listed with the assets that you wish to gift.
The Guardian you choose
A person can name someone as the guardian of their children if they have young children. Name a guardian to take care of your children if you are incapacitated.
Your will can also be used to express your funeral wishes. You can specify whether you prefer cremation over burial and include information about the funeral you wish your family to observe.
Name the Executor you choose
You can also name someone to be your executor. Your wishes are carried out by the executor.
The Essentials of a Trust
Although a trust can be used as an estate planning tool it serves a different purpose. There are many types of trusts, so a houston probate lawyer will be able to help you choose the best type.
A trust’s primary function is to protect your assets. You create trust. The trust will then be used to hold your assets.
Name your assets on your trust transfers ownership rights from you to your trust. This is done to make it easier to transfer your assets to your beneficiaries after your death.
A trust allows your family to avoid probate court if you have a will. Your family must go through probate court if you leave a will.
Probate law determines the validity of a will. It is used by families to transfer assets from a deceased person to their beneficiaries.
The probate court has its downside: the high costs. Probate is expensive. It takes a lot of time.
A trust can be a great way to simplify the work of your family after you die. However, it is important to understand the different types of trusts that you have.