When you are ready to begin planning your estate, understanding the options available is critical to protecting your assets. Unfortunately, many are confused by the overwhelming amount of estate planning choices, which can lead many to procrastinate completing this necessary process. Two options many seem to confuse are a Living Trust and a Will. If you’re interested in planning your estate, it’s in your best interest to contact a Medina, Ohio estate planning lawyer to explore your options with the guidance of an attorney who can help you make the best decisions for your needs.
What Is a Living Trust?
A Living Trust is an estate planning document that allows you to place assets into the Trust while alive before transferring them to your Beneficiaries upon your passing. For example, you’ll find that you can name yourself as the Trustee so you can reap the benefits of certain assets before they are transferred to a Successor Trustee upon your passing.
Additionally, a Living Trust allows you to help provide your Beneficiaries with assets before passing. Unlike a Will, which only takes effect after the creator has passed, you can create terms and conditions for your Living Trust that allow your Beneficiaries to receive assets before your death. For example, you may want to leave your child funds, but only when they have graduated college. As such, the Trust will allow them to receive funds incrementally after they meet the terms and conditions of the Trust. This helps ensure the Beneficiary does not mishandle these funds.
How Does This Differ from a Will?
Though a Living Trust does have similarities to a Will in that both are intended to protect assets for Beneficiaries, there are many differences between the two. As mentioned, the assets included in a Will are only available to a Beneficiary upon the death of the creator, whereas a Living Trust takes effect as soon as it is created.
Another considerable difference is that assets held in a Living Trust do not have to go through the Probate process like assets named in a Will. Probate is complex, as it requires the courts to validate the Will and oversee the distribution of the assets. However, the assets held in a Trust are exempt from Probate. As a result, creating a Trust can help you avoid this complicated and expensive process.
Finally, if you are worried about privacy, one of the biggest differences between these two documents is that a Will becomes a public record after it is submitted to the courts, whereas a Living Trust will not be made public, offering privacy.
You may wonder which of these two options is best for you. It’s important to understand that you can establish both documents. Generally, a Will is regarded as one of the most important estate planning documents, as it allows you to dictate who will receive which assets. However, you can place assets in a Trust if you have a Will.
As you can see, it’s in your best interest to connect with an experienced attorney who can help you navigate the complex process. At Krause Law, we will examine your circumstances to determine the best course of action for your wishes so you can have peace of mind that your assets and Beneficiaries will be protected. Connect with us today.