When you own assets it can be a good idea to establish who will receive those when you pass. Yet, estate planning isn’t always an easy process. You may be deciding on a revocable trust vs will.
Knowing which one will address your concerns depends on a few different factors. If you are unsure which is the better option between a will or revocable trust, this article is for you. Here are the differences between a revocable trust vs will and which one is better.
What Is a Revocable Trust?
A revocable trust is also known as a living trust. It is a way to manage and protect the assets within your estate. A revocable trust provides flexibility because it offers protection while you are living.
A revocable trust is a private entity that can be amended or revoked at any time.
With a revocable trust, you are able to establish a trustee who manages your assets and property on your behalf. A revocable trust will provide information on who receives your property or assets.
What Is a Will?
A will is a legally binding document that provides how you want your final affairs handled. That includes how your property and assets are after you die. If you have children who are minors, a will can provide information about who should have guardianship.
When you have a will a judge will preside over the transfer of your estate based on the information in your will. A well-written will has insight into the handling of your assets for your beneficiaries.
Which Is Better?
Based on several different factors it may be more beneficial for you to choose a revocable trust vs will. One advantage a trust has is if you were to become mentally incapacitated, instead of passing away.
Your revocable trust can contain information about what should happen with your assets in this situation. Your trustee could step in for you if you couldn’t handle your own affairs. Another advantage of a revocable trust is your beneficiaries will avoid probate.
The probate process involves the courts transferring ownership of your assets. This only happens when you have a will. There are also additional costs that your beneficiaries would have to pay if you have a will.
There can also be delays which can make a hard situation worst for your beneficiaries. Especially if they need immediate access to things like money.
Lastly, a revocable trust allows you to have more control over how your assets will be distributed in comparison to a will. For example, if your beneficiaries are minors the probate court has to name a conservator to manage the assets until the minor is old enough. If you don’t want to leave those decisions up to the courts, a trust will allow you to appoint a trustee.
It is important to note that a revocable trust does have more paperwork than wills. Yet, a trust lawyer can help make the paperwork a breeze. Also, you have to maintain the records of your trust to ensure all your assets and property is covered.
But as you can see there are more benefits of a trust vs will.
Revocable Trust vs Will
As you begin your estate planning you should no longer think revocable trust vs will. Rather, you should make sure your choice meets your personal concerns. While a revocable trust may have the most benefits, there are times where a will can help too.
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