The future depends on what you do today.” — Mahatma Gandhi
It’s true. The decisions that you take now will decide the future of you and your family members, especially your children.
It was just a saying to give you an eye-opener effect. Our major focus is on real-estate planning and protecting your loved ones from any future consequences. You often avoid estate planning thinking that everything is fine but you never know what can happen in the next minute. If in case, you leave the world without any proper planning for your children, the fate of your finance, property and the most important, the welfare of your children will pass onto others or to the court which we think, you wouldn’t like it. So, do it today for a happy future of your children.
People often avoid estate planning because they are not sure what they need. They get confused with the documents and property agreements and thus they leave it to fate. If you are also avoiding due to the same reason, it’s going to be very harmful in the future. We know it’s difficult so we recommend hiring an attorney.
Sometimes, people successfully work on estate planning but they get confused between two important legal documents i.e. wills and trusts. They are unable to select a suitable option for their property.
So, to clear the confusion between wills and trusts, we have mentioned the differences between both.
Difference based upon the effect of the document
The terms and conditions mentioned on will go into effect upon your death. It will just be a written document without any legal bearing while you are alive. On the other hand, the trust will be legally effective immediately after the creation. You can see your kids settled in life before you die.
Difference based upon the probate
Under your will, your heir has to get the approval from the court to access the assets. After the details mentioned on your will is clear and accepted by the court, your kids will be permitted to take over the property. Verification and approval from the court take a huge time and involves hefty court fees. Whereas, in trust, there is no probate and steps for acquiring the property is simple.
Difference based on varieties or variations
The conditions or the specifics mentioned on the will are different from the situations. You can keep the content according to your family relations and other related factors. On the other hand, there are two important varieties in the trusts where the grantor plays an important role.
- Revocable trust- Grantor controls the assets and can change the terms of the trust at any time
- Irrevocable trust- Grantor can easily change the terms and can give up control of the assets.
Difference based on purposes
Both are important in estate planning but when it comes to purposes, trusts overpower the wills. Wills have limited functions that become relevant only after your death. But, in the trusts, you cannot not only help your children but can help disabled people, fund charitable endeavors and most importantly, you can minimize tax liabilities.
We know it’s difficult to understand wills and trusts, especially if you do not belong to a similar background. We don’t want you to commit any mistake so it’s good to consult with a qualified real estate attorney.