Which One is Better-A Trust or a Will?
There are so many good options when it comes to estate planning, but two of the most popular are trusts and wills. It is common for people to ask us if one is better than the other. While either option can do well to protect your needs, a trust can provide more ease for you and your beneficiaries in the long run.
If you only have a will, then you have a document that goes into effect upon your death. With this option, you leave a detailed plan of how you want your estate to be distributed. Every will must be brought into court, referred to as probate, so keep in mind that this required process could become costly in fees. The court basically takes control of your assets and appoints someone from your will to administer it. The entire process can take up to one or two years.
Your other option is to get a trust. With a trust, you can completely avoid probate because the court aspect is not required. In fact, your trust can be administered in as little as a few weeks in an attorney’s office. If you get a living trust, you should also go ahead and get a pour-over will. A pour-over will is a type of legal document that states that anything left out of the trust should be given to the trust. It is basically a catch-all in case you forget something. Remember, estate planning is not just for the very wealthy. It is suggested that anyone with their total assets worth more than $150,000 get both a trust and a will. This high number is much easier to reach than you think, especially when we are talking about adding up the worth of all of your assets.
Another benefit to getting a living trust is that this process usually includes a package of important documents that anyone would need to further protect their estate. You may also need one or some of the following documents: a power of attorney, a healthcare power of attorney, a HIPAA waiver, or a property agreement. With the right attorney, you can get all of these documents done at the same time as your living trust. Not only does this ease your mind, but it also makes the future much easier for your beneficiaries. These are the types of documents people often put off, but they are the same ones that you will need the most. Let Aliav Law get you started on the path that is right for you and your loved ones.
Your next step is to join our facebook group called “Parents Protecting Assets in California”. We provide valuable information on protecting assets from future in-laws and creditors!