When it comes to wills vs trusts in estate planning, there are a number of factors that need to be considered. The most important distinction in wills and trusts is the one between revocable and irrevocable wills. These two types of wills have very different functions in estate planning, so it’s important for anyone considering the will vs trust debate to know what they are up against when making this decision.
What is a will?
A will is a legal document that allows you to determine who receives your property after death. By designating the recipient of specific items and assets, wills give you peace of mind knowing exactly how your possessions are going to be distributed upon your passing—something most people just don’t have when they pass away without one.
What is a revocable trust?
A revocable trust is only effective once the wills creator has died. Therefore, it cannot be used to manage an estate during their lifetime or for any other purposes that require immediate attention. The main benefit of a revocable will over a simple will is its capacity to divide property between multiple beneficiaries at one time instead of individually after someone.
What is an irrevocable trust?
An irrevocable will cannot be changed or modified in any way. Once the wills creator sets the terms of the wills document, it’s not possible for them to change their mind about what they want done with their property after death. This means that one needs to have a very good reason for setting the type of trust up.
What is estate planning?
Estate planning is a wills term that refers to the process of creating wills documents. This can be anything from a simple will or trust to more complicated arrangements such as living wills and powers of attorney, which are also wills tools for managing the property after death.
Why should you consider an irrevocable will?
In most cases, only those who have a large number of assets or property should consider irrevocable wills. This is because wills typically become irrevocable only if the wills creator dies before revoking it, so those who are still living can change their mind about what they want to be done with their estate at any time.
How can Handelin law help me with my estate planning?
Today, wills are an integral part of estate planning. Wills allow you to choose who inherits your property after death and they can be vital in helping reduce the amount of conflict that often arises when a family member passes away without having designated their inheritance. However, wills do have limitations—which is why trusts exist as another wills tool for managing an estate.
Handelin Law is a successful firm with years of experience in helping people with their estate planning. We know what it takes to help you create wills and trusts, which are tools for managing your estate planning. We have helped many people protect their assets in preparation for retirement or death with wills documents suited to each person’s needs when it comes to the will vs trust debate.
If you are in need of assistance with wills vs trust: estate planning make sure to contact Handelin Law today. We look forward to hearing from you.