Skip to main content

Wills and Trusts: Both Important but Very Different

We often hear a lot of confusion regarding the terms "will" and "trust", with some folks even thinking that they are one and the same, which is definitely not the case. Though both are key elements of estate planning, they serve distinct roles.

A will only goes into effect after the will's creator  - also known as the testator - has passed away. The person then responsible for carrying out the desires of the testator and distributing assets to the beneficiaries is referred to as an executor. Executors are in charge of wills, not trusts.

So, whats a trust? A trust is a legal arrangement under which one person or institution, called a trustee, holds legal title to property that will eventually be distributed to beneficiaries. Unlike a will, a trust can be "active" the moment it is created. It may be used to distribute property to beneficiaries prior to the death of the trust's creator (settlor), upon the death of the settlor, or delayed well after the death of the settlor.

Another key difference between a will and a trust is that a will must pass through probate, which is the court supervised process of establishing the validity of a will, locating and determining the value of assets owned by the deceased, paying the decedent's outstanding bills and taxes, and distributing the remaining assets to the will's beneficiaries or heirs. A trust does not go through probate. An estate may have some parts that pass through probate and others that pass through a trust. In addition, a will becomes public record; a trust can remain private.
Labels:

Comments

Post a Comment

Popular posts from this blog

Questioned by the Police? - Don't Forget Your Rights

One of the special things about our country's criminal justice system is that if you are suspected or accused of committing a crime, you have certain fundamental rights. Unfortunately though, many people aren't aware of their rights, or, in the head of the moment, they forget about those rights. For instance, citizens who find themselves being questioned and in police custody may not even be aware that they have a basic fundamental right to have an attorney present any time they are being questioned by any branch of law enforcement. Truth is, having an attorney present if you are being quested is vitally important. Why is that? For one thing, an experienced criminal defense attorney can help you from incriminating yourself, can make sure that you don't answer questions that are designed to trick you, and can keep officers from asking the same question over and over again. Bottom line - having a criminal defense attorney on your side can help make sure that you don...
2 comments
Read more

Your Rights When You're Pulled Over for a Supected DUI

Fact is, most people don't even know their rights if they're pulled over! Here's a quick list of the most important rights you need to know and how the conversation may go if you are pulled over: "Do you know why I pulled you over?" It's typically the first thing you'll hear. It's also deliberately designed to get you to admit to certain behavior. Be polite and simply ask, "Why do you ask?" and then wait for a response. Do not comment. That phrase "anything you say can and will be used against you in a court of law" is truer than you'll ever know, trust us. "Have you had anything to drink tonight? " If you truthfully have had nothing to drink that night, say, "No." If you've had something to drink, you don't have to share that information! Telling the officer that you've been drinking will be evidence used against you. Instead, say, "I have no statement to make." While it may seem u...
Post a Comment
Read more

This Sign of Alzheimer's May Precede All Others

Familiar symptoms of Alzheimer's disease and dementia include memory loss; inability to follow or continue with a conversation; a decline in exercising good judgment; confusion as to what day, month, season, or year it is; and social withdrawal. But a recent study points to a warning sign that precedes all these symptoms, to the surprise of many. According to research published in the journal of Alzheimer's disease, navigational issues may crop up before memory loss, and well before a clinical diagnosis of Alzheimer's is made. Participants in the study were asked to navigate a virtual maze on a computer, using various patterns and landmarks to find their way around. The study consisted of a control group of healthy subjects and a group who had preclinical alzheimer's - they had a few markers but weren't clinically diagnosed. The preclinical Alzheimer's test subject had far greater difficulty assessing, mapping, and navigating their virtual environment th...
Post a Comment
Read more