The purpose of a good estate plan is to protect your family when you are no longer a part of this world. You can either make a will or a plan. But to know what you should opt for, you must understand the essential characteristics of the two.
What Is A Will?
A will is an official document that declares who you choose as a representative to own your property after you die. It is viable to amend your will at any point in time. Will become a part of public records after it is passed through probate.
What Is A Trust?
Trust can be of two types- revocable trust and irrevocable trust. However, both have to be created during your lifetime. The terms of a revocable trust can be changed at any point in time. You will retain the ownership in case of a revocable trust. But the legal title to the property is inherited by the person to whom the property is passed.
You cannot amend an irrevocable trust once the ownership is transferred. The right of the property involved in an irrevocable trust is immediately transferred to the beneficiary.
Trusts remain private, unlike wills, since they are not required to pass through any probate.
Should You Get Both Will And Trust?
You will be able to protect your family with a will as well as trust. Each has its pros and cons, but together, they offer a wide range of protection. Trusts will not allow you to mention a guardian for your children but will offer that benefit. Furthermore, trusts will not let you specify who will conduct your funeral. But in a will, you can mention that.
However, trusts have other functions to perform. It can be used to plan unanticipated events or to develop elaborate tax planning. Moreover, there are many forms of trust- revocable and irrevocable trusts are the most basic ones. You can put one section of your property under revocable trusts while putting another under irrevocable trusts as per the goals you are trying to achieve.
You may include a living will as part of your estate plan to address end-of-life issues. You can refer to people you trust for making decisions related to estate planning. It is advisable to take help from an expert as the law governs these documents.
Finally, it may be concluded that you can make a will and trust to offer enhanced protection to your family. You may consult an attorney before getting involved in estate planning because it is a complicated process that calls for legal advice.