Understanding the difference between a will and a trust can help you determine which approach is best for your situation. In this article, we outline the key differences between a will and a trust.
What is a Will?
A will is a legally binding document outlining how your assets, including property, investments, and other possessions, will be allocated and distributed after death.
When creating a will, you can include instructions for the care of minor children and name an executor who will manage the estate.
What is a Trust?
A trust is a separate legally binding document that allows you to manage and allocate assets during your lifetime. Trusts can be revocable or irrevocable.
Revocable trusts allow the grantor to maintain control over the trust and management of their assets while he or she is still living. Another benefit is that revocable trusts can skip the probate process.
On the other hand, irrevocable trusts provide more protection from taxes and creditors. The benefactor, however, loses control of the assets once they are transferred to the trust.
Which One is Right for Me?
The right approach for you depends on your wishes and your financial situation. If you want to create a legal document to pass on assets after death, a will is an excellent option. On the other hand, if you want to protect your assets from taxes or creditors and manage them while you are alive, a trust could be a good choice. Wills and trusts are not mutually exclusive. You can have both. Everyone should have a will, but not everyone wants or needs a trust.
Working with a notary or estate planning attorney can help you better understand your options and decide which approach is suitable. At Zancope Notary, our team of professionals can provide you with guidance and support to ensure your final wishes are legally documented.
At Zancope Notary Public, our specialties are Wills and Estate Planning documents (Representation Agreement and Power of Attorney) and real estate. We are a full-service firm. We also offer real estate services for clients in Langley and throughout Greater Vancouver and the Fraser Valley. We can help you with buying, selling, and refinancing real estate, and provide family property transfers and independent legal advice.
If you have any questions about this article or estate planning, in general, or if you want to make an appointment with Zancope Notary Public, please contact us at (604) 260-6783.
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