Just because you have an estate plan doesn’t mean you have a complete understanding of how it will work. And if you don’t understand it, how will you explain your wishes to your family?
Many people — no matter what point they are in life — have difficulty understanding the intricate distinction between a will and a trust. These common estate planning tools both help direct assets after you pass, but their differences are important to you if you need to explain to your loved ones what to expect.
What’s the difference?
The critical difference between these two estate planning options is when they go into effect. A will is a document that dictates the distribution of your estate upon your passing. However, a trust goes into effect upon signing.
The assets placed in the trust no longer technically belong to you, but to the trust. The administration of a trust falls to a trustee, someone you appoint, such as a family member or a bank. A trust serves as an estate tax protection and allows for greater flexibility with the assets allocated to it.
Deciding what’s best for you
By now, you probably have at least a better idea of how you would like to direct your estate planning efforts, but still have many more questions. The most important thing is understanding what lies ahead of you so that you can make the right decisions.
It is strongly recommended to consult with experienced legal professionals who can guide you through the process. A compassionate attorney can help you make informed decisions that will lead to a secure future for you and your loved ones.
Kentucky ElderLaw, PLLC will be holding two free seminars on December 10th. They each will cover more about the difference between wills and trusts, as well as how to keep from going bankrupt if you need a nursing home, how to save money on long-term care costs, and the veteran’s benefit that pays for in-home care.
December 10 @ 10 am – Hilton Garden Inn, 400 Sherburn Ln, Louisville, Kentucky 40207
December 10 @ 7 p.m. – Pleasure Valley Lions Club, 6000 Lions Arms Dr., Shively, Kentucky 40216
We look forward to seeing you and helping you along your estate planning journey.