Trusts vs. WillsFriday, February 16th, 2018, 4:59 pm
Both trusts and wills can ensure your possessions, assets, and beloved items end up in the right hands after you pass away. While trusts and wills can protect your future, it's important to acknowledge that there is a difference.
Let's take a look at the major differences between a trust and a will.
What is a Trust?
Establishing a trust allows a third party to take control of certain assets on behalf of the asset's beneficiary. A trust allows you to determine certain limits or expectations that the beneficiary must meet before they can access the trust.
Setting up a trust also allows your beneficiaries to avoid probate. This can save them money on taxes while also helping them to get access to these assets faster.
There are different kinds of trusts you can set up, depending on who you'd like to give your assets to. A marital trust, for example, passes assets on to a living spouse while a charitable lead trust allows you to designate a certain amount of assets to a charity of your choosing.
What is a Will?
A will is different than a trust. While a trust can give some direction for your assets to move after you pass away, a will documents exactly what you'd like to happen to your property and assets after you die. Your will acts as a list of instructions and names who you would like to follow through with your wishes.
Creating a will is important because it can reduce confusion and hassle for the family and friends you're leaving behind, especially if you wish to leave your property and assets to a non-traditional beneficiary. If you do not leave a will behind, state law will determine where your possessions and property go.
Creating Wills and Trusts
Wills and trusts are designed to be used together to create a comprehensive estate plan. For help creating a will or trust, or help determining which can best help your situation and family, contact the Estate Planning attorneys at Michael F. Kanzer & Associates, P.C. You can contact our Brooklyn office at 718.769.7200.