Deciding what happens to your assets upon your passing requires estate planning with an experienced attorney. They help determine which estate planning option or “tool” is best to ensure your wishes are granted. Here’s what you should know about the difference between an estate and a trust to make navigating the planning process easier.

Estate

“Estate” refers to the property you own at the time of your passing and includes money, as well as residential and commercial spaces. Without a will, your estate gets settled in probate court, which is often a long, costly process for family members and other beneficiaries. Wills clearly outline who you want your estate to go to, such as your spouse, children and grandchildren, or local nonprofit organization. They are legal documents that enforce your final wishes and can only be contested if fraud or other issues are suspected, such as creating a will, despite being mentally unfit to do so.

Divide your estate with assistance from a reputable attorney who also serves as a witness. The creation of any will requires at least one competent witness to be considered legally binding by the courts.

Trust

Some people prefer to set up trusts instead of wills. A trust is a legal agreement—or fiduciary relationship—between you and those you give permission to handle your estate. Known as trustees, these individuals hold your assets until it is time to give them to your beneficiaries, such as your children or grandchildren. Like wills, trusts are available through estate planning attorneys and allow you to transfer your property to the right people.

Testamentary trusts are those created under valid wills and are only accessible upon your passing. Living trusts also become valid at death but are created by you, the grantor, and detail how you want your assets divided. 

Plan for the future with help from the attorneys at Privette Law Office. The family-oriented firm has provided residents throughout Howell, Oregon, and Texas counties in Missouri with dependable services for over 30 years. Call (417) 469-3535 today to schedule a meeting, or visit the attorneys online for a full list of practice areas.