The world of estate planning can become quite overwhelming for many people. Not only does estate planning force you to confront your own mortality, there is also a vast array of estate planning instruments for you to choose from. It can be difficult to know for sure what types of estate planning tools and documents will best allow you to reach your personal and financial goals. Two of the most common types of estate planning instruments are a last will and testament and a trust. While these tools can achieve similar goals, there are several importance differences between a will and a trust.
The Benefits of Drafting a Will
You may be surprised to know that only about 40 percent of Americans have a will, trust, or other estate planning document in place. When drafting a will, you must consider how your assets will be distributed to beneficiaries upon your death. Understandably, it can be very difficult for people to make plans for after they pass away. However, creating a will allows you to be in control of how your property is disseminated. You worked hard to earn the property that you have, so it is only fair that you should get to choose how it is distributed and who will receive it. Perhaps even more importantly, creating a will saves your surviving loved ones from the burden of having to guess how you would have wanted your property to be passed down.
Differences Between a Trust and a Will
A trust is similar to a will in that it allows you to dictate how your property is distributed to beneficiaries. However, a trust differs from a will in that it gives another party, called a trustee, the authority to manage your assets for the benefit of your beneficiaries. There are many different types of trusts which could benefit you and your family depending on your unique circumstances. These include a revocable trust, irrevocable trust, special needs trust, testamentary trust, charitable trust, and many more. Unlike wills, trusts are not required to go through probate, the court process which confirms the validity of the will and supervises the distribution of property. Probate is a state court proceeding which means that anyone can access information regarding the deceased person’s property, liabilities, beneficiaries, and more. Families who wish to keep this information private often use a trust in order to avoid probate.
Contact a Lombard Trust Attorney
If you want to learn more about your estate planning options, contact a knowledgeable DuPage County estate planning attorney at A. Traub & Associates. Call 630-426-0196 to schedule a confidential consultation today.