Often, people get confused in their estate planning process. One might be unsure if they should include a will or a trust in their estate plan. To conclude with one, it could be necessary to know the difference between both terms. It would be best to contact an estate planning attorney San Antonio since they can help you derive a trust or a will, depending on your case.
There are some differences between a trust and a will that you should be aware of. Being knowledgeable about these differences can help you draft a successful estate plan. Protecting your assets and the estate could be crucial.
Drafting a will with an estate planning attorney could be one’s first choice, given it is more known to the people. Although, executing a will might e a complicated and time-consuming task if a minor or a child is involved. However, implementing trust is more manageable and creates an effective way to distribute assets among the beneficiaries.
The critical difference between a trust and a will is that the trust would be effective immediately after you sign it, while a will would become effective once you pass away.
Benefits of a trust:
- It can be easy to manage
- One can add a trustee to manage their estate
- You can also create a deed that consists of the trustee and the beneficiary
- Greater control over the flow of assets
- Various types of trusts for custom needs
Disadvantages of a trust:
- Drafting a trust could be tough
- One would be charged for creating a trust
- The selection of beneficiaries should be finalized once since it cannot be changed
A will can be considered a simple document. One can quickly draft a will with the help of an estate planning attorney in San Antonio. The will be executed after the applicant’s death. The assets would be divided as per the wishes of the will.
A will might limit the defendant to ist out estate or properties only in some cases. The flexibility of a will could be questionable.
Benefits of a will:
- No need for legal binding
- You can easily create a will by yourself
- Easy to create and manage
- Cost-effective when compared to a trust
Disadvantages of a will:
- The beneficiaries of a will could likely face probate
- A will is more subjective and applicable to taxes
- Anyone from the public can access will since it is a public record.