Living Trust Vs Will… What Are the Major Differences?
Both wills and living trusts are ways to ensure your assets are passed to your family after your death.
When considering your family’s future, it’s important to weigh the benefits of having a living trust vs a will. And, while wills are what come to mind when people think about their legacy, there are a few key differences that distinguish the two.
One of the most important differences is that a will takes place after your death and must go through probate court. A living trust, on the other hand, goes into effect when you’re alive and does not require probate court. While this may seem like a minor technical difference, having a living trust in place can save your family a lot of time, money, and unnecessary heartache.
You don’t want your family tied up in probate court
After you pass, you want your assets to provide for your family immediately. If you’re the sole provider in your family, they likely cannot afford to endure the lengthy probate process that a will would require. In typical cases, wills are tied up in probate court for a minimum of six months.
And, of course, lawyers aren’t free, so all that time can cost your family a lot of money. If your will is contested or you have assets in multiple states, court could end up costing your family tens of thousands of dollars. Not only does this chip away at their inheritance, it can quickly multiply any debts they have if they don’t have a reliable source of income.
Finally, there’s the emotional toll that probate court can have. If your will is contested, probate can lead to drama, strife, and familial fractures. And, since the probate process isn’t private, your family’s net worth and grievances could all be aired publicly.
But, there are also other benefits of a living trust vs will
In addition to avoiding probate court, there are a number of reasons people should pursue a living trust vs a will. A living trust can reduce your family’s tax burden, ensuring that they inherit a higher percentage of your assets. In the case of irrevocable trusts, they can also safeguard your family from creditors.
Another major benefit of a living trust vs will is that trusts protect your assets while you’re still alive. While this may not seem important if the goal is to securely transfer assets after your passing, it’s a crucial difference because it protects your estate if you’re incapacitated.
Still debating between a living trust vs will?
At Wiser Financial Group, we pride ourselves on delivering top-quality financial services to our clients. If you’re weighing the pros and cons of a living trust vs a will, we encourage you to reach out to us to discuss your best option. Our experienced team has decades of experience in wealth management and will work closely with you to ensure we’re taking the steps necessary to protect your assets and, more importantly, your family.
Are you ready to get started?
If you’re eager to begin your financial journey, the team at Wiser Financial group is here to help.
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