Estate planning shouldn’t be as confusing as it is. As a Raleigh estate planning attorney, I regularly deal with people who are simply trying to set things up so that things will be easier for their loved ones when they do die.
One of the top topics that my customers struggle with is the differences between a will and a living trust. Both documents can be used to pass assets to your heirs. Let’s break down some of those difference:
3 key differences between a will and a living trust are:
- When It Goes into Effect: A will goes into effect after the individual passes away. However, a living trust usually goes into effect immediately after the document is signed.
- How Assets are Distributed: Items that are passed on through a will must go through the probate process. Essentially, this means the court oversees the process. However, a living trust can be used to distribute assets outside of the probate process with little to no court interference or probate costs.
- What It Specifies: A will allows for additional specifications than just the transfer of assets, such as guardianship arrangements for minor children or funeral arrangements. However, a living trust doesn’t allow for these for things.
There are advantages and disadvantages to both wills and living trusts. The decision on the right option comes down to each specific couple and situation. If you need to know which is better for your family, give me a call today at (919) 740-1264.