At Candela Law Firm, our attorneys often recommend wills and trusts for those who want to ensure their assets are appropriately distributed after their passing. While both of these documents can create a complete estate plan, they have very different purposes and legal effects.
Below, we’re exploring the main differences between wills and trusts, their benefits, and why you might consider them.
A will is a legal document that fully outlines how you want your assets and property to be distributed after you pass. This can include a wide range of property and assets, such as liquid cash, real estate, business ownership, jewelry, and family heirlooms. It can also direct the care of your minor children after your death.
A will can help your family avoid a great deal of legal complications after you pass. Here are some of the top benefits of creating a will:
A trust is a legal document that creates an arrangement between a person or entity and a beneficiary. In other words, a trust allows a beneficiary to hold legal title to another’s property.
For example, some people set up trusts so that a family member can receive income and draw money from an account to support themselves.
While a will goes into effect after you die, a trust goes into effect immediately. Another key difference between wills and trusts is that trusts do not go through probate. This means that the court does not oversee the process of creating a trust.
Trusts aren’t always needed, but in some situations, they have advantages over wills. Here are some of the top reasons for creating a trust:
Are you considering setting up a will or trust? The legal team at Candela Law Firm would be happy to help. Contact us today to schedule a consultation at our office in Tampa, FL.
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