Let’s go through a scenario. Kevin stands at the door of Winnie’s nursing home room,…
The term trust and will is common to many people, but a few can distinguish what makes them different. Both terms are useful devices in estate planning serving different purposes and can be used simultaneously to bring out an entire estate and asset plan.
Wills are legal documents that establish the rightful beneficiaries after your death. It is also useful in laying out the preferred guardians who will take care of your children. It states how taxes from your estate and debts will be paid. The document also affirms the person responsible for executing your wishes.
In case a will is disputed and taken to a probate court, it may take between 9 and 16 months and can take a longer period before the process is completed. However, during such a period, your assets may remain inaccessible and tied up. In the meantime, you’ll be paying attorney and court fees.
A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. There are many types of trusts, however trusts generally are grouped into two categories; Revocable and Irrevocable trusts. Revocable Trusts also referred, living trusts are designed to avoid probate and provide a simple quick distribution of assets. Irrevocable trusts are designed to avoid probate, protect assets from creditors and reduce taxes. The main structural difference between the two is that with Living Trusts the grantor or person who sets up a trust has total control of the assets In the trust and is usually the trustee. Whereas, the grantor of an Irrevocable trust has significantly less control of the assets in the trust and is not the trustee of the trust.
Living trusts and wills accomplish a similar objective. On both platforms, you can name a beneficiary and how the assets will be executed after your death. However, they have different advantages when compared to each other. King of Prussia PA. estate planning attorney will give you the best advice on a suitable platform to commit your assets.
Trusts and will can be done successfully under the direction of a legal expert to avoid disputes between family members and preserve you’re assets. The attorneys are experts in estate administration and are conversant with tax issues. For a smooth and a peaceful execution of your will and trust employ the services of a King of Prussia PA. estate planning attorney.
Contact Faloni Law Group LLC for efficient and affordable legal advice on wills and trusts.