When planning for your family’s future, deciding between wills vs. trusts can feel overwhelming. Both serve important roles in estate planning, but understanding the differences between the
two and how they work can help you make informed decisions that benefit your loved ones. Each option has unique advantages, and often, using them together provides the best outcome.
Understanding Wills vs. Trusts
A will is a legal document that defines how and where your assets will be distributed after you die. In addition, a will allows you the chance to name guardians for any minor children. Wills must go through probate, which is a legal process that ensures that all of your debts are paid and your assets are distributed according to your instructions. While straightforward, this process can sometimes be lengthy, public, and expensive.
On the other hand, a trust is a legal arrangement where a trustee, usually pre-appointed by you, manages assets on behalf of beneficiaries. Trusts can be revocable, meaning they can be altered during your lifetime, or irrevocable, meaning they cannot be changed once established. Unlike wills, trusts do not go through probate, which can save time and keep the distribution of assets private. Trusts also provide more control over how and when your assets are distributed, making them a flexible option for estate planning.
Wills vs. Trusts: Which Should You Choose?
The choice between wills vs. trusts depends on your specific circumstances and goals. Wills are often a good choice for more uncomplicated estates. They're straightforward and allow you to clearly outline your wishes. However, because wills go through probate, they may not be ideal for those seeking to avoid court involvement.
Trusts are beneficial when you want to manage your assets more efficiently or protect them from certain risks. For example, trusts can be used to provide for a child with special needs without jeopardizing their government benefits. They can also help you plan for incapacity, helping to ensure that your assets are managed exactly to your wishes if you cannot do so.
When Wills and Trusts Work Best Together
In many cases, it's wise to use both a will and a trust. While a trust can handle the bulk of your assets, a will acts as a safety net to ensure that any assets not included in the trust are distributed according to your final wishes. This combination is often called a "pour-over will" and trust arrangement, ensuring your entire estate is covered.
Using both wills and trusts also provides comprehensive coverage for your family’s future. A will can address specific details, such as naming guardians for children, while a trust can focus on managing and protecting assets. This approach allows you to enjoy the benefits of both tools, creating a robust plan tailored to your needs.
How Johnson McGinnis Elder Care Law Can Help with Wills and Trusts
Johnson McGinnis Elder Care Law specializes in creating personalized estate plans that reflect your unique goals and priorities. Whether you're looking to simplify the process for your family or protect your assets, their team can guide you every step of the way and offering peace of mind.
Contact Johnson McGinnis Elder Care Law & Estate Planning to learn more about how we can help secure your family's future with a plan that works for you.
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