Many people opt to utilize a trust or a will as their main estate planning tool. Both of these files serve important functions in an individual’s estate plan. There are some unique advantages of using a trust over a will.
One unique advantage of using a trust over a will is the privacy that it uses. Wills should be probated. This involves the court having jurisdiction over the case. When a will is probated, it becomes a matter of public record. Some courts permit any such documents to be accessed by anyone with access to the court system. A trust supplies privacy since it is not a matter of public record. It is administered privately by the called trustee.
Using a trust offers higher control over the possessions and income. In a will, a present is offered to the called beneficiary. A trust permits the grantor to develop a series of guidelines for the trustee to follow about how the property ought to be utilized. In this way, the grantor can make guaranteed instructions about how to handle the trust property.
Some people do not wish to provide a straight-out present to another individual before or after their death. In a will, there are no conditions to these gifts. In a trust, the grantor can establish conditions about when a person can get gifts from the trust. The trust may need the trustee to refrain from supplying trust funds to a recipient until he or she graduates college, tests negative on a drug test or reaches a certain age.
Using a trust might help a person avoid the probate process. Probate is worried with the properties that an individual owns at the time of his/her death. If the person owns no property, his/her estate does not go through this procedure. A trust transfers legal ownership from the grantor to the trust itself. Not going through probate often helps an individual’s estate be dealt with much more effectively without the included expenditures and lengthy nature of the probate procedure.
Another advantage of using the probate process instead of a will is that the grantor can still maintain the properties during his or her life time. If he or she ends up being disabled, the trust might have language that permits the trust funds to be used for his/her own care. The property in a trust can be available for the grantor’s use in case of special needs or other unforeseen scenarios. Having a trust also makes it possible to continuously handle property, income and trust funds throughout the grantor’s disability, which would not be paid for with just a will in location because a will does not make plans when it comes to disability.
Avoidance of Conservatorship Proceedings
Since a trust can attend to the management of assets during an individual’s disability or incapacitation, prospective conservatorship procedures may be avoided. This type of court case is frequently invasive and may require constant court participation. Guardianship or conservatorship procedures can be intricate and expensive, typically requiring a bond, yearly accounting and extra legal fees.
A revocable trust is typically more flexible than a will. It may be more useful in cases involving recipients and possessions that are in other states. With a will, there might be a requirement to develop a probate case in each state where property is positioned. Trusts can likewise be easily modified.
When assets have currently been transferred to the trust, it may be faster for the trustee to dispose of these possessions according to the directions in the trust file than it would consider the administrator of a will to get rid of the assets. When going through the probate process, the administrator needs to offer notification to understood beneficiaries and creditors and pay off debts before any distribution to beneficiary can happen. In contrast, properties in a revocable trust might be liquidated or dispersed quicker.
Individuals who are thinking about drafting a trust or a will may want to seek advice from with an estate planning attorney. She or he can discuss the advantages of utilizing a trust in addition to a will. He or she can make recommendations based on the specific factors to consider of the client. She or he may even recommend utilizing both files, such as by utilizing a pour-over will that places any property owned at the time of the testator’s death into the trust.