What is a will?
A will is a legal document that many people choose to form in case of the event of their death. Wills declare where a person’s assets and funds will be sent after they pass away. In many cases, assets and funds are ordered to be split between family members. A will can also include funeral plans, like a request to be cremated or directions for burial.
What are the differences between a will and a trust?
A will can allow the executor to create a trust for beneficiaries. Trusts are legal arrangements that send funds from an owner to a beneficiary. Many people who create trusts decide the rules for how the beneficiaries can use the money from the trust. For example, a parent can create a trust for their child to only be used as college funds, so the child will have access to the trust at a certain age but still only be allowed to use it for a specific purpose. Trust grantors can even create revocable trusts, which are trusts that can be altered or revoked by the grantor at any time. Trusts are used most commonly in estate planning to distribute assets between beneficiaries. Overall, the biggest difference between wills and trusts is that trusts can allocate your funds to beneficiaries while you’re alive, but wills are only executed after your death.
Why are wills important?
Wills are vital in the event of death because they ensure that your family members will receive your assets. Without a legal will, the state decides where your assets will go. Creating a will puts you in charge of your assets even after death. If you have children that are minors, it’s also incredibly important to create a will to establish a legal guardian for your children if you are no longer to care for them anymore. If you’re looking to create a will, you should hire a seasoned will attorney for legal assistance. Contact Herting Law PLLC today to speak to one of our trusted lawyers.