WHAT IS THE DIFFERENCE BETWEEN A WILL AND A TRUST?
You may be wondering what the difference between a will and a trust is. To put it simply, a will is a written agreement that appoints an executor to manage your estate and affairs once you have passed. A trust is a written agreement that appoints a trustee to manage certain assets for the benefit of another, the beneficiary. The trust then becomes effective at your time of choice.
When it comes to a will, it may be the only document you create that allows you to pass your estate on to the next generation. Your estate includes such things as tangible personal property, money, investments, business interests, and any real property that you own. Under a will, which can be created by a Manassas estate planning attorney, the name of an executor and possible guardian are included. At your time of passing, the executor would then take responsibility for managing your personal affairs and guardian would then take responsibility of your minor children. A will also protects dependents in need of extra assistance. This can include protection of their assets in order for their support costs to be covered.
Trusts are created in order for you to give a trustee control over certain assets. The trustee is then responsible for holding these assets for the benefit of the beneficiaries. A trust, which can be created by an estate planning lawyer, is a private document that does not go through the probate process. This document can also reduce the heavy burden of estate taxes. In comparison to a will, a trust takes effect at your time of choice. This means that once you have become ill or mentally incapacitated, the trustee can then take over for you, instead of having to create a power of attorney.
DISCUSS YOUR OPTIONS WITH OUR FIRM!
When it comes to creating either a will or a trust, it is important to consider your options. It may never be an easy topic to discuss; however, these documents can help assure that your loved ones are taken care of after your time of passing. Without these documents, your loved ones will be faced with having to take of your affairs while grieving over your loss. At Farrell and Croft, let us help ease your mind by drafting a will or trust to protect against any uncertainties of the future. Contact a Prince William County estate planning lawyer today!