A will and a living trust are two different legal instruments used in estate planning.
A will is a legal document that outlines the distribution of a person's assets after their death. It allows a person to name an executor to manage their estate, appoint guardians for any minor children, and specify who should receive their property. A will only becomes effective after the person's death and must go through probate, which is a court-supervised process of distributing assets and settling debts.
On the other hand, a living trust is a legal document that outlines how a person's assets will be managed during their lifetime and distributed after their death. A person can name themselves as the trustee and manage their assets for as long as they are able, and then name a successor trustee to manage their assets if they become incapacitated or after their death. A living trust can help assets avoid probate, as the assets are owned by the trust rather than the individual. The trustee can distribute assets to beneficiaries without court oversight.
One advantage of a living trust over a will is that it can help avoid probate, which can be expensive and time-consuming. A living trust allows for more privacy than a will, as the trust document is not public record. Additionally, a living trust can help planning for incapacity, as it allows for appointment of a successor trustee to manage assets if the original trustee becomes incapacitated.
However, a living trust can be more expensive to set up than a will, and typically requires more ongoing maintenance to ensure it remains effective. Additionally, certain assets, such as retirement accounts, may not be able to be titled in the name of the trust and must be distributed through a will.
It is important to consult with an experienced attorney to determine which estate planning tool is right for your specific situation, as there may be limitations or exceptions based on state laws or individual circumstances.
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