Wills and trusts are the foundation of comprehensive estate planning, giving you significant control over how your assets are distributed after your passing. While both vehicles make your wishes legally enforceable, there are some critical differences between the two that may provide substantial benefits to you and your family members. Understanding these differences could save your heirs both time and money, while preventing conflicts over your assets.

Wills

A will is a legal document that describes who should receive your property after you pass away. Once it’s processed through probate, the will carries the power of a court order, allowing assets to be retitled and distributed to those you’ve chosen. If your gross assets are valued at more than $11 million, including cash, stocks, and valuable belongings, the estate may be subject to a federal tax before beneficiaries receive their share. While wills are relatively simple to prepare, there are limitations to how much power they provide the decedent. For instance, you cannot place conditions on the inheritance of your property or decide how it will be distributed.

Trusts

Unlike a will, a trust is actually a separate legal entity, to which you assign legal ownership of your assets. A trustee, typically a financial institution or estate planning attorney, will then manage these assets for your benefit. When you pass away, you can simply leave control of the trust to another beneficiary or have it dissolved and distribute assets to your loved ones. Because a trust doesn’t have to go through probate, it can save family members a great deal of time and money while keeping the contents of the estate planning documents private. A trust also allows you to set conditions on inheritance, such as requiring a child to complete college or distributing their share on a monthly basis instead of a single lump sum.

For more than 80 years, residents in Jefferson, GA, have relied on Davidson Hopkins & Alexander to guide them through the estate planning process. Their commitment to clients, as well as their in-depth legal expertise, have earned them an established place in the local community. Give them a call today at (706) 367-5264 to schedule an appointment, and visit their website to learn more about what they do.