Both are useful estate planning tools that have different purposes, and both can work together to create a complete estate plan. Often only a will is created which is only effective after death and leaves the family in court and conflict.
A will only will go into effect when you die, while a trust takes effect as soon as it’s signed and your assets are transferred into the name of the trust, known as “funding” the trust. To this end, a will directs who will receive your assets upon your death, while a trust specifies how your assets will be distributed before your death, at your death, or at a specified time after death. This is what keeps your family out of court in the event of your incapacity or death.
Furthermore, because a will only goes into effect when you die, it offers no protection if you become incapacitated and are no longer able to make decisions about your financial, legal, and healthcare needs. If you do become incapacitated, without a power of attorney or healthcare directive, your family will have to petition the court to appoint a conservator or guardian to handle your affairs, which can be costly, time-consuming, and stressful.
Typically, having both a will and trust is important to ensure the greatest protection for both you and your family.
For more information, please contact 626-858-9378, info@tyrelawgroup.com, or www.tyrelawgroup.com
Leave A Comment