What is the difference between a Will and a Trust? Both are valuable tools in an Estate Plan, but they behave very differently. A Will doesn’t come into effect until after you die; a Trust on the other hand comes into effect upon its creation.
A Will also requires a Court to put its terms in place. This process is called Probate. There are many who perceive the probate process as problematic. Some of these problems include the process potentially being lengthy; and the validity of the Will being challenged. There can also be administrative hang ups to distributing your property to your loved ones. Probate can be expensive, with costs of the court, attorney fees and executor fees. The Probate process is also a matter of public record.
Trusts on the other hand avoid courts, so it is not a matter of public record. There are no court delays, so your loved ones get their inheritances when you want them to. Compared to the potentially staggering costs of probate, trusts can be a wise financial decision.
That isn’t to say that Wills are the wrong choice or bad. A proper Estate Plan cannot be created without an understanding of both your Estate and your wishes. At RS Law, we take pride in crafting each estate plan tailored to the specific needs of each estate.