In this post, we talk about two of the most popular estate planning tools: wills and trusts. Keep reading to learn more about the difference between these two types of documents, plus other useful facts about wills and trusts.
What Is a Will?
A will is a document that states a person’s final wishes to ensure that they are carried out.
While wills are some of the most well-known estate management instruments, some people prefer other alternatives because once the testator (that is, the person who made the testament) dies, wills usually have to go through a court-appointed process known as probate.
People prefer to avoid probate because it can be a drawn out, expensive process. Another typical concern is privacy, since probated wills are public record — in other words, anyone can access a probated will.
What Is a Trust?
A trust is a document where a person (called trustor or grantor) grants another party (known as trustee) the authority to hold assets for them and distribute them when they die.
There are different types of trusts, for example:
- Living trust. Also known as inter vivos trust, it’s made during the trustor’s lifetime.
- Testamentary trust. It’s made after the trustor dies, according to the instructions in their will.
- Revocable trust. The grantor can modify the trust while they are alive.
- Irrevocable trust. The grantor cannot change the trust after its creation.
Now that you know the broad differences between wills and trusts, it’s important to remember that every case is different. Your choices in estate planning will depend on several individual factors, such as the size of your estate, local estate tax laws, and your personal needs.
If you need help crafting a trust or a will, or making sense of your options, our team at the EBL Law Group stands ready to offer assistance and answer all your questions.
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In the EBL Group, you have a legal team ready to offer the knowledgeable guidance you need. When you choose us to assist you, you receive the benefit of personalized attention and total commitment to your case.
We are located in Rancho Cucamonga, California. Call us at (909) 581-4351 for a free consultation, or fill out the contact form on this website to get in touch with our team.