Trusts and wills are both useful estate planning tools. However, each has its pros and cons that you ought to know about when planning for the future of your estate.
It could help you make the right call, depending on what you want to achieve with your estate. Here are some of the benefits of a trust over a will:
A trust offers asset protection from creditors
While a will transfers ownership of an asset to the beneficiary, a trust does not. Instead, assets held by a trust belong to the trust, and creditors cannot repossess them for debts owed by a beneficiary.
Trusts avoid the probate process
A will has to go through probate court before execution. The entire probate process can be time-consuming and costly and is usually a public proceeding. On the other hand, a trust does not have to go through probate while its terms are only known to the parties privy to it – the grantor, trustee and beneficiaries.
A trust gives you more control over our estate
You can designate part of your estate to go to your grandchildren’s education with a trust or even dictate how and when your loved ones will receive trust proceeds even when you are gone. You cannot achieve this with a will since the new legal owners of your assets can do with them as they please.
What type of trust is best for you?
There are many types of trusts to choose from, and picking the best one can be confusing. However, the most ideal kind of trust depends on what you seek to achieve with your estate plans and the present circumstances. For instance, if you have a loved one with special needs or want to preserve your family fortune, there is just the right type of trust for the job.