Wills vs. Trusts: Take Control of Your Wealth Distribution!
You work hard for your money and want to ensure that your wealth distribution goes according to your wishes upon death. Sadly, many people simply do not understand the difference between wills and trusts and how they can affect inheritance. Do not be one of them! Take control of your wealth distribution by understanding what wills do not control and the benefits of a trust.
5 Things a Will Does Not Control
Most people believe that a will encompasses and controls all of your assets. That is simply not the case. Proper asset ownership for Will-based plans can be confusing. However, the bottom line is that a will only controls assets in individual names; it does not control:
Retirement accounts / pension plans
While having a Will allows you to avoid having a court decide who gets what, a Trust can generally protect you even further.
5 Benefits of a Living Trust
There are many benefits to a Living Trust, including these five:
Avoiding the public, time-consuming court, and potentially, costly processes at death (probate);
Avoiding the same regarding incapacity (conservatorship or guardianship), also known as living probate;
Providing for spouses without disinheriting children;
Saving estate taxes in some cases;
Protecting inheritances for children and grandchildren from the courts, creditors, spouses, divorce proceedings, and irresponsible spending.
There are many types of assets which can be funded into your Trust, such as real estate, bank accounts, investment accounts, and intellectual property rights. Others might include:
Notes payable to you
Life insurance – if you do not have an irrevocable life insurance trust
Oil and gas interests
Personal effects – artwork, jewelry, collectibles, antiques
It is important to work closely with your estate planning attorney to make certain that all of your assets are distributed according to your wishes – and done so with the least amount of cost and time delay.
Contact us today, at 301.892.2713, for more information about wills, trusts, and other financial planning issues and let us help you decide what is best for your situation!
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