Comprehensive estate/trust planning will ensure your family has money to finance their needs after you’re gone. You can also leave possessions with sentimental or monetary value to specific people. Knowing the difference between a will and trust will ensure your assets go to the intended parties. Review this guide to have a better understanding of these documents. 

Wills Go Into Effect After Probate

From properties to 401(k) accounts, numerous assets can be transferred through a will. This legal document also names the guardians for your children, which a trust can’t do. 

If someone passes without a will, the court decides who will take care of their children. The chosen party might not necessarily be the best choice, so it’s essential to draft this document.

To ensure your funeral plans are followed, outline any wishes in the will. None of the stipulations in the document go into effect until after your passing. At that time, the estate will be subject to probate. This is the process where the court proves the will is valid and locates beneficiaries. 

Living Trusts Become Active Immediately

You can also leave properties and other assets for loved ones in a trust. There are multiple types of trusts, but living trusts are the most commonly used variety. Unlike a will, this option goes into effect as soon as it’s created. You can continuously transfer money or property into the trust, retain control of the assets during your lifetime, and change beneficiaries if needed.

Upon your passing, the person you appoint as your successor will take control and ensure your wishes are met. The assets in a trust aren’t subject to probate, which means beneficiaries will get their inheritance faster.

For estate/trust planning assistance, contact Larry Cook, Attorney at Law in Cabot, AR. Since 1987, the lawyer has helped clients throughout central Arkansas draft wills, set up trusts, and handle probate law to protect their family’s futures. Explore the law firm’s practice areas online, or call (501) 843-6591 to arrange a consultation to discuss your estate/trust planning needs.