Most people know that both wills and trusts have something to do with estate planning. When it comes to the specifics, though, differentiating between the two can be challenging. For example, in both a will and a living trust, you can distribute property to beneficiaries. However, the similarities essentially end there. Here are the major differences between these two documents, so you can decide whether to include both in your estate plan.

Last Wills

A last will and testament is perhaps the most important estate planning document. If you do not implement any other arrangements, you should at least draft a will. In this document, you can designate a guardian for any minor children, name the executor of the estate, and provide instructions for paying taxes and various debts. Since you can modify the terms of this document at any time, it’s never too early to create it, as long as you review it periodically and ensure the arrangements still apply. 

Living Trusts

Living trusts provide another vehicle by which to distribute property to beneficiaries. Since these assets are transferred to the trust when it is created, though, they do not have to pass through probate upon your death. In other words, using living trusts to leave property to loved ones will protect their privacy since probate records are public. 

Unlike last wills, you can include strict parameters for the use of specific assets in living trusts. For example, although pets cannot inherit property, you can create a living trust that stipulates its funds are to be used for the care of your furry friends. 

The knowledgeable attorneys at The Law Offices of Katzman, Logan, Halper and Bennett, LPA can answer all your questions about estate planning. Serving clients throughout the Cincinnati, OH, area, this firm is led by seasoned lawyers who have more than 100 years of combined experience practicing law. In addition to estate planning and probate administration, they can assist with personal injury claims, business acquisitions, divorce cases, workplace discrimination suits, and real estate transactions. To learn more about their team of strategic attorneys, visit their website. To schedule an initial consultation, call (513) 793-4400.