Wills vs Living Trusts: What's the Difference?
You've heard about wills, and you've heard about living trusts. You know that they're both important, but so far the terms seem to have been used somewhat interchangeably. Is there a difference between wills and living trusts? Is there an advantage to using one over the other?
The Law Firm of Phillips, McElyea, Carpenter, & Welch, P.C. is here to help you answer these questions. Essentially, a will is a legal document that dictates how your property and assets will be distributed after you pass. A will only effects those assets that are part of your probate estate. Living trusts, on the other hand, allows you to dictate how your assets will be distributed after you pass or if you become incapacitated and avoid probate court. Here's a quick look at some of the specific differences between wills and trusts.
Naming Guardians for Children
In Missouri, children are not considered legal adults until they turn eighteen. If both of a child's parents/guardians pass away before he becomes an adult, another individual will be appointed his guardian.
Wills: If you have a will in place, you will be able to use the document to assign an individual to take over your role as guardian in the event of your passing.
Living Trusts: Living trusts do not allow you to appoint a replacement guardian in the event of your passing.
Identifying Heirs to Property
Property is not only a location for your home or business - it can also be a major financial asset. Understandably, many people wish to designate beneficiaries for their property after they pass.
Wills: Wills allow you to designate beneficiaries for your property.
Living Trusts: Living trusts also allow you to designate beneficiaries for your property and allow you to transfer your assets without going through the probate court.
Leaving Property To Minors
Generally, individuals choose to not distribute property of significant value to minor children. Understandably, however, many parents wish to leave their property to their children even if they are not yet legal adults. It is possible to do this by following certain legal procedures.
Wills: If you are leaving property to a minor using a will, you must designate an adult to manage the property until the child turns eighteen.
Living Trusts: If you are leaving property to a minor using a trust, the trustee will automatically manage the property until the time set forth in the trust agreement.
Naming An Executor
After you pass, your executor is the individual who will see that all outstanding taxes and debts are paid and that your assets are distributed to your heirs as you have directed. This is a big responsibility, so many people understandably wish to designate a person they trust to handle the job.
Wills: Wills allow you to name an individual to act as executor of your estate after you pass.
Living Trusts: Living trusts require you to appoint a trustee. Trustees manage your assets as directed in the trust agreement. If you create both a will and a living trust, you may appoint the same person to serve as your executor and your trustee.
Privacy
Often, people view their finances and assets as private affairs that they do not wish to be publicly known. Many people wish to have this privacy continue after their passing.
Wills: Wills are public legal documents; after you pass, it will be publicly available.
Living Trusts: Living trusts are private agreements; after you pass, your affairs will be handled privately.
Contact Us For More Information!
These are simply a few examples of the differences between wills and living trusts; the exact differences and specifics of each document are too complicated to condense into a single blog post. For more information and resources to help you set up your estate plan, we invite you to set up a free consultation with one of our experienced estate planning attorneys in Camdenton, MO. We would be happy to work with you!
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
The Law Firm of Phillips, McElyea, Carpenter, & Welch, P.C. is here to help you answer these questions. Essentially, a will is a legal document that dictates how your property and assets will be distributed after you pass. A will only effects those assets that are part of your probate estate. Living trusts, on the other hand, allows you to dictate how your assets will be distributed after you pass or if you become incapacitated and avoid probate court. Here's a quick look at some of the specific differences between wills and trusts.
Naming Guardians for Children
In Missouri, children are not considered legal adults until they turn eighteen. If both of a child's parents/guardians pass away before he becomes an adult, another individual will be appointed his guardian.
Wills: If you have a will in place, you will be able to use the document to assign an individual to take over your role as guardian in the event of your passing.
Living Trusts: Living trusts do not allow you to appoint a replacement guardian in the event of your passing.
Identifying Heirs to Property
Property is not only a location for your home or business - it can also be a major financial asset. Understandably, many people wish to designate beneficiaries for their property after they pass.
Wills: Wills allow you to designate beneficiaries for your property.
Living Trusts: Living trusts also allow you to designate beneficiaries for your property and allow you to transfer your assets without going through the probate court.
Leaving Property To Minors
Generally, individuals choose to not distribute property of significant value to minor children. Understandably, however, many parents wish to leave their property to their children even if they are not yet legal adults. It is possible to do this by following certain legal procedures.
Wills: If you are leaving property to a minor using a will, you must designate an adult to manage the property until the child turns eighteen.
Living Trusts: If you are leaving property to a minor using a trust, the trustee will automatically manage the property until the time set forth in the trust agreement.
Naming An Executor
After you pass, your executor is the individual who will see that all outstanding taxes and debts are paid and that your assets are distributed to your heirs as you have directed. This is a big responsibility, so many people understandably wish to designate a person they trust to handle the job.
Living Trusts: Living trusts require you to appoint a trustee. Trustees manage your assets as directed in the trust agreement. If you create both a will and a living trust, you may appoint the same person to serve as your executor and your trustee.
Privacy
Often, people view their finances and assets as private affairs that they do not wish to be publicly known. Many people wish to have this privacy continue after their passing.
Wills: Wills are public legal documents; after you pass, it will be publicly available.
Living Trusts: Living trusts are private agreements; after you pass, your affairs will be handled privately.
Contact Us For More Information!
These are simply a few examples of the differences between wills and living trusts; the exact differences and specifics of each document are too complicated to condense into a single blog post. For more information and resources to help you set up your estate plan, we invite you to set up a free consultation with one of our experienced estate planning attorneys in Camdenton, MO. We would be happy to work with you!
Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
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85 Court Circle N.W., P.O. Box 559
Camdenton, MO 65020 GET A MAP
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