If you have worked hard for your money and managed to save enough such that you are leading a sustainable life with no regrets then it is normal to express a desire to know what happens to your property once you die. Even when you lead a simple life and have no kids, you must have wishes of how you want your assets to be distributed when you are no longer in this world. Hence, you tend to get a living trust or will that will ensure that your assets are distributer as per your wishes.
Most people have heard or come across the expressions “wills” and “living trust,” yet very few people really know the differences between the two. Both are helpful bequest or arrangements that fill distinctive needs, and are incorporated to serve a certain purpose like protecting a party’s wishes once they die. Both a will and living trust permit you to set the terms for the dispersion of your property after you pass away. The contrasts between the two, notwithstanding, can be very significant.
One primary distinction between a will and living trust is that the former becomes effective strictly, when you die, while the latter becomes active once it is finalized. A will is a written document that coordinates who will get your property once you pass away and it delegates a private advocate to do as your wishes. In contrast, a living trust can be employed by dispersing property before death, at death or when you are incapable due to an accident. A living trust is a legitimate course of action through which one individual (or an establishment, for example, a bank or law office), called a “trustee,” holds lawful title to property for someone else, called a “recipient.” A living trust typically has two sorts of recipients – one set that controls the trust and another set that gets to control the trust once the first recipient is dead and incapable.
A will covers any property that is just in your name when you die. It doesn’t cover property held in joint occupancy or in a trust. A trust, then again, covers just property that has been put in the trust. In other words, property should be incorporated into a trust; it must be placed for the trust’s sake. Another distinction between a living trust and will, is the latter requires the intervention of the court to go through while the former does not.
Wills and living trusts have their own advantages and disadvantages. For instance, a will allows you to name a person to be the guardian of your children and indicate your burial plans, while a trust does not. Then again, a trust can be used if you are unable to perform your obligations due to sickness and allows another party to have access to funds.
If you want to get a living trust or will then it is advisable to consult with your lawyers and ensure that you have understood both before making a decision.