Trusts and Wills: What is Different?
With so many choices in Estate Planning, it cannot be easy to pick the right one. However, a PA probate attorney may be able to assist. To help you plan for the future and carefully examine for the sake of your family members, we’ve broken down the two significant elements of estate planning: Wills and Trusts.
When it Comes to Estate Planning, how are Wills and Trusts Different?
There are many similarities between wills and trusts, but there are also many distinctions. To put it another way, both methods of determining who will get your money have their benefits and drawbacks.
When it comes to when and how they materialize, there is a vast difference. Unlike a will, a trust goes into effect immediately after signing and funding it, unlike a Will.
Making a simple will might make it easier to understand. You can do as follows with a will:
- Give children and pets guardians
- Decide where your money goes
- Specify the final configurations
Although it is a more straightforward process, a will has its drawbacks. As an example, a will provides some control over the distribution of assets. Probate is also likely needed after your death.
Pennsylvania probate attorneys know that Trusts can be more complicated, but they can also be highly beneficial. Trusts:
- Give you more control over the distribution of your assets
- Apply to all of your Trust’s assets
- They come in a variety of shapes and sizes
Before establishing a trust, remember that it must get funded by giving assets to it, allowing the trust a legal owner. Trusts are more complicated to set up than wills, but they have a significant advantage over wills.
There is a lot of value in avoiding or minimizing probate, which is a huge benefit for some people. Even if you don’t plan to use the Trust, this alone would be enough to justify the extra effort as a state college lawyer will let you understand.
To avoid probate, it’s preferable not to have a Living Trust and a Last Will. Anything that’s only in the latter could face probate, while the assets in a trust usually have a shield from the probate process.
You may have heard of the term “Pour-over Will” when it comes to the type of will that comes with most living trusts. Anything you own beyond the Trust—and even if it’s subject to your Last Will—will be given to your Trust when you die.
A pour-over will is an insurance policy to ensure that your assets get transferred to your trust in the event of your death.
A Living Will is distinct from a Last Will and a Pour-Over Will, two other types of wills. The term “Living Will” refers to a group of documents that outline a person’s wishes regarding medical care.
These are some of the documents you’ll find:
- Power of Attorney for Medical Care
- Advance Authorization for Medical Treatment
- Health Insurance Portability and Accountability Act Form
Is Probate Required for Wills?
Having a will does not guarantee that your estate will avert probate. Your assets go through Probate if you’ve not done a thorough Estate Planning before your death.
As a court-supervised procedure, it can be expensive and time-consuming, depending on the strength of your Estate Plan, hence the need for a state college probate law firm.
How a State College Law Firms Can Help
Your loved ones will bear the burden and stress of making decisions if you cannot do so and do not have a strategy in order. Creating an estate plan is an excellent way to give back to those you love.
The good news is that you don’t have to go it alone. No matter what happens, a state college probate lawyer at Engle Kauffman and VanHorn is by your side. We’ll assist you in making an informed decision about your Estate Plan based on your unique needs and desired outcomes. Contact us today!
