Choosing What’s Right for You
Regarding estate planning, wills and trusts are two of the most popular options. While both will provide your heirs with a way to access your assets after you pass away, you should be aware of some crucial differences between the two. This blog will discuss the differences between wills and trusts regarding how they can be used for estate planning purposes. We will also look at what each option does and why one might be better suited for certain situations than another. By understanding these key distinctions, you will have a better idea of which type of document best suits your needs when planning out your legacy.
Key Differences Between Wills and Trusts
The main difference between wills and trusts is that a will outlines your wishes for the distribution of your assets upon death, while a trust will allow you to manage those assets during your lifetime. Wills are written documents that will be executed after your death, while trusts are established while you are still alive.
One of the key benefits of a trust is that it will help your assets avoid costly probate proceedings. They will require an individual to assume the role of trustee, enabling them to manage and distribute assets according to your wishes. This means that with a will, your wishes will only be followed after death, while a trust will give you more control over how your assets will be handled during your lifetime.
Another difference between wills and trusts is that trusts will allow for asset protection. Trusts will give an individual the ability to place certain restrictions on their assets - such as preventing the recipient from being able to sell the asset or requiring them to use it for a specific purpose. This will provide individuals with greater security and ensure the assets will be used according to your wishes.
Lastly, trusts will allow for property transfer without going through probate court - meaning that you will have access to your assets much sooner than you would with a will. This will benefit individuals looking to pass on their assets to beneficiaries quickly and without the burden of costly court proceedings.
Work With Colorado Estate Planning Attorneys
When it comes to estate planning, wills and trusts offer different benefits that will allow you to protect your assets and ensure they will be handled according to your wishes. If you need help determining your estate planning needs, sit down with an experienced estate planning attorney who can guide you.