Estate planning involves making important decisions that can impact your loved ones for years to come, but complex legal jargon often makes the process difficult. Many people are unsure what an estate is, or what the differences are between establishing a trust and writing a will. Understanding the differences between these key terms will help you design an estate plan that protects your wealth and your loved ones.

What Are Trusts, Estates, & Wills?

Estates

While the term “estate” may evoke images of palatial houses with acres of land, legally, the word refers to the total of all your property. This includes your savings account, vehicle, house, and even personal items with sentimental value. Everyone has some amount of personal property, which is why careful estate planning is important.

Wills

Wills are the simplest and most common way of transferring property to your loved ones after you’re gone. These legal documents allow you to specify which pieces of property should go to certain individuals or charities, giving your final wishes the power of a court order. Estates administered through a will have to go through probate, after which the beneficiaries will receive their inheritances.

Trusts

Living trusts are unique estate planning tools that give you more control over the assets you leave behind. Unlike wills, trusts are completely separate legal entities that take ownership of your belongings and manage them for your benefit.

After you’re gone, a new beneficiary can be named, or the assets held in the trust can be distributed to your heirs. Assets held in the trust also don’t have to go through probate, which can save months of time and a significant portion of your estate.

Estate planning doesn’t have to be an intimidating experience if you have a skilled lawyer to guide you through the process. Since 1976, the legal team at Goicoechea, DiGrazia, Coyle, & Stanton has provided residents of Elko, NV, and the surrounding areas with the detailed legal guidance and personal attention they need to create estate plans. To schedule a consultation, visit their website or call (775) 738-8091.