As you begin to create your comprehensive estate plan, you will need to consider the pros and cons of a trust vs will. Trusts and wills can both be used in order to make it possible for you to transfer assets to others. However, they are very different in the ways they work. You should think about what creating a trust and what creating a will can do for you and decide what plans make the most sense for your situation.
Many people who consider a trust vs will end up finding they are better off by using both trusts and wills. However, to determine how best to take advantage of the legal tools to protect your assets, and to transfer your assets, you should get professional legal help.
A Cincinnati estate planning lawyer can provide invaluable advice in using trusts, wills, or both to ensure you can leave a strong legacy and take care of the people you love after you are gone.
Understanding The Use of a Trust vs Will
Wills are the simplest and most straight forward way to transfer assets after a death. Many people create a last will and testament and go no further in their estate planning.
In your will, you can dictate who you want to receive what assets. You can name an executor who will take care of those assets until they go to new owners and who will oversee the probate process used to transfer assets. You can also leave instructions for things like how you want your funeral to proceed and what should happen to your pets or your children if something happens to you and they still need care.
While wills are a legal tool with many uses which allow you to quickly and simply make provisions regarding many important matters after you pass away, there are limits on what wills can do. For example, if you transfer assets via a will, the transfer of those assets is generally always going to occur through probate.
If you only use a will in your estate plan, you won’t be able to maintain control over the assets you transfer, or protect the value of your estate by reducing or eliminating estate taxes. Your will also is not going to help you to do anything to protect assets and ensure they are managed in case you become incapacitated.
With trusts, you have more complications when the trusts are created and there can be ongoing costs associated with maintaining and managing the trust. However, you have much more control over the assets kept in trust and trusts can be used for a wider variety of purposes than wills.
If you use a trust to transfer assets, you can facilitate the transfer of the money and property held in the trust outside of probate. This means a much faster transfer of assets. Depending upon the kind of trust created, you can also prevent estate taxes from being assessed on the property within the trust and you can protect the assets while you are alive so they won’t be lost if you need to pay for costly nursing home care.
You can also use trusts to ensure your minor children or pets are taken care of financially if you pass away and they require care, and you can ensure your heirs do not squander the financial gift you provide to them after your death.
Trusts can allow you to specify money is to be used only for a specific purpose, and you can name a trustee who will manage assets on behalf of beneficiaries who cannot manage the assets themselves or who you do not trust to be responsible. Trusts are so versatile and have so many uses, you should discuss with a lawyer all of the ways you can incorporate them into your estate plan.
Getting Help from a Cincinnati Wills and Trusts Lawyer
Zimmer Law Firm will provide invaluable assistance with the decisions you ned to make on trust vs will. We can also provide you with guidance on how best to use both of these legal tools, as well as other tools available to you, to ensure your assets are kept safe and your heirs can inherit.
To learn more about wills, trusts, and their role within a comprehensive estate plan, you can join us for a free seminar. You can also give our Cincinnati wills and trusts lawyers a call today at 513.721.1513 to get comprehensive estate planning advice which will help you to keep your assets safe and to take care of the people you love after your death.