When you talk about Estate Planning, you often hear the terms “Will” and “Trust” used together. They both have a role in determining who receives your assets after you die, but they are different documents that serve different purposes.
Estate Planning & Elder Law Attorney, Mindy Felinton, wants to help explain these terms to her readers.
So What’s the Difference?
To start with, a Will is what is called a testamentary document meaning it only takes effect after you die. A Trust, on the other hand, is a living document and it is valid as soon as you, the settlor, signs it. You re-title your assets into the Trust and you have control and access immediately.
Your Will must go through Probate to be considered effective. Your Trust does not go through Probate. When you die, the Entire Trust can be administered and distributed automatically, saving time and money.
With a Trust, you can also create sub-trusts for spouse, children, or grandchildren. You can set limits on how the assets are used and even determine when, if ever, a child should get control of them. if you have a Will, you can still specify that assets be placed in a Trust for your child’s benefit after you die, but why take that extra step?
With a Trust, you can name a successor trustee to manage your affairs, if you lose mental capacity.
What’s Right for Me?
Elder Law & Estate Planning Attorney, Mindy Felinton, can help you find the solution that best fits your need. If you would like to set up an appointment with Mindy, give her team a call at (301) 610-0055 or (561) 290-2179.