Will And Living Trust: What’s The Difference?
Transferring a property to the rightful heir is the next action done after the death of the property owner. But the question is: What is the best option for distributing the estate? Usually, there are two devices available, namely last will and living trust.
So what’s the difference? Each has its own pros and cons. This article will help you decide the best course of action for distributing your estate to your heirs.
What’s The Difference?
Both a last will and a living trust are legal tools for transferring properties to the beneficiaries. But while the former requires intervention of the court, the latter need not go through the probate court, which can require several years and can be costly. Aside from that, a last will becomes public record after the estate owner dies. On the other hand, a living trust remains private.
A last will is binding and cannot be changed as soon as it is written. On the other hand, a living trust is amendable any time. You can easily revoke the provisions of your will and make changes to it without the need of a probate court.
From the name itself, a living trust gives power to the state owner to manage his assets until such time that they can no longer do so. In this case, a successor trustee will be named to manage the assets. In a last will, the management of assets requires a Power of Attorney.
In terms of costs, the living trust is more expensive in the management, preparation, and funding but will cut down probate costs on the premise that the assets are handled by the trust. With a last will, there is minimal costs in the preparation but more expensive on the probate costs.
Whether it’s a Last Will or Living Trust, the better option is to get the services of a lawyer. This is true if the issue about your estate is quite complicated.
Melvin Magadia is a writer and blogger for a company selling branders cheap coasters and branders tote bags. He writes helpful guides about a wide range of topics but concentrates most on business, technology and travel-related posts.