Have you ever wondered which one is right for you? A Will lets you decide how your property and assets will be distributed at the time of your death. A Trust lets you decide how you want your property and assets managed if you’re incapacitated and at your death. For some one of these tools will accomplish their goals, but often they work together to create a more comprehensive plan.
Which one is better if your goal is to protect your kids under 18?
Planning for families with kids under 18 is a great example of a Will and Trust working together. While you can leave property and assets to your kids in your Will, kids under 18 can’t inherit in Florida. A Trust is a way around that. With a Trust you name a trusted adult to manage what you leave your kids until they turn 18, or until you decide they’re old enough to get it. That person can also give your kids money, through their guardian, as needed for their health, education, and support. Speaking of guardian, you won’t be able to name a guardian for your kids through a Trust. You can name a guardian through a Will. By using these two tools together, you can protect your kid’s future.
Which one is better if your goal is to avoid Probate?
While both a Will and Trust let you name who you want to leave your property and assets to after you die, a Will won’t avoid probate. Probate is a judicial process that happens after you die. The Court takes your Will, makes sure its valid, and then facilitates the distribution of your assets. There are costs associated with Probate, such as court fees and attorney’s fees. Trusts avoid Probate thereby saving you on those costs. If your goal is avoiding Probate, a Trust is probably a better fit.*
Which one is better if your goal is incapacity planning?
A Trust lets you decide what happens to your property and assets if you’re ever incapacitated. If you’re ever in a situation where you’re not able to make decisions for yourself, a Trust lets you choose someone to step in and continue to manage your things as you instruct. A Will can’t do this because a Will only becomes usable after you die. If planning for incapacity is one of your estate planning goals, then a Trust might be the right tool for you.
Which one is better if your budget is limited?
It’s important to also consider that setting up a Trust is more expensive than setting up a Will. Trusts are more comprehensive requiring more work to set up than a Will. A Trust does save you money in the long run because your estate saves money on Probate associated fees which are usually higher than the cost of setting up a Trust. If your goal is to save money now, however, then a Will might be the right tool for you.
As you can see there are many things to consider when deciding on whether a Will or Trust is right for you. Your individual goals and situation will determine which one is the right fit. If you’re wondering which one is right for you, you should always consult an attorney to go over your estate planning concerns and goals.
Everyone’s situation is different, and this post is not meant to replace an attorney’s advice. If you’d like to consult me, you’re in luck because I offer a free initial consultation, click here to book: Complementary Initial Consultation.
*There are other ways to avoid Probate and I’ll go over those in next month’s blog posts.
