What is the Difference Between a Living Trust and a Will?

While some tend to use the terms “trust” and “will” interchangeably, it’s important to understand the distinctions between the two. This is especially true if you’re trying to manage your assets in the event of your death. It’s fair to assume that the process can get complicated, especially when it involves passing possessions from one generation to another.

You have worked hard all your life to build up your savings and property. At the end of the day, you want to be able to easily pass your estate to your close family and relatives. The process, however, can get tricky when you don’t know what is best for your situation. That’s why Paula Montoya Law in Orlando, Florida is here to help. Below, you can read about the difference between a living trust and will to avoid any unnecessary confusion.

What is a Living Trust?

While a will goes into effect after you pass away, a living trust goes into effect as soon as the documents are signed. Once a trust has been set up, you control the assets and you can change the terms of the trust at any time. Assets typically include bank accounts, real estate, business interests, stocks, bonds, mutual funds, and more.

Living trusts are usually a great option when a trustee wants to include beneficiaries such as children or grandchildren in addition to their spouse. Not only that, there are some tax savings associated with trusts. And since you can control the living trust while you are alive, you can fund it at your pace. As soon as you pass away, the terms of the living trust cannot be altered to ensure your wishes are followed and will remain unchanged.

What is a Will?

A will indicates how your property is distributed when you pass away. This legal document allows you to designate assets and real estate to beneficiaries or organizations. For instance, if you have a family business or investments you want to designate to a specific person. This can help ease tensions between family members. More than that, a will lets you direct a portion of your assets to a charity, if you wish.

If you have children who are minors, a will allows you to provide for them in the event of your death and declare a guardian to take care of your minor children and the property they will inherit. Wills can be changed at any time while you are alive.

Begin Drafting Your Will or Trust in Orlando, Florida

At Paula Montoya Law, we are here to help you decide which type of estate planning is best for you. If you are seeking an attorney to draft a will or living trust, we have the comprehensive legal experience to help you get started.

We understand the process and we’re here to walk you through it every set of the way. We know how to meet your goals by understanding your needs and making recommendations to protect what’s yours. Call us about your will or living trust today in Orlando, Florida.

Estate Planning in Orlando: What is a Living Will, and Why is it Important?

A living will is a legal document that informs family members, doctors, and medical care professionals what your wishes are in the event you depend on life support to stay alive. If you are a resident of Orlando or Central Florida, it’s important to make plans for a living will as part of your estate plan. Below, we will help you understand what a living will is, and how it fits into the estate planning process.

Of course no one wants to think about the possibility of becoming incapacitated or terminally ill. Unfortunately, it’s a fact of life that accidents happen every day. And if an unexpected accident happens to you or someone close to you, you want to be prepared. A living will provides you with peace of mind to ensure your wishes are followed, no matter what happens.

How Do I Make a Living Will?

While you don’t need a lawyer to draft a living will, it’s recommended to have an estate planning lawyer properly draft one for you. This is because every state has its own requirements, and you need to make sure that the legal details are taken care of. Not only that, lawyers help draft estate planning documents every day for their clients. They will know how to prepare one specifically for you.

When writing the living will, you can state whether you wish to remain with la life support device in the event of a terminal condition, end-stage condition or vegetative state. You can name a specific person, or agent, who can help carry out your wish to keep or remove you from life support. Making these decisions is certainly not easy, but worth preparing for.

Once you have a living will, make sure you keep it in a safe place. You may keep a copy with your attorney and another in your home office. If you ever become incapacitated in the future, your living will must be within easy reach. Be sure to let you relatives know where to find your living will if something should happen.

About Estate Planning in Orlando, Florida

No matter your financial situation, estate planning is an essential step to take to ensure your final wishes are honored and your family members are taken care of. It can also mean the difference between clarity and confusion in the event of an untimely death. At Paula Montoya Law, our services include last will and testaments, living wills, designation of healthcare surrogates, life estate deeds, trusts, and more.

Our team wants to help you make the proper arrangements so that when the time comes, every party is protected. And as estate planning professionals in Orlando, we can help you minimize the amount of taxes you pay and avoid costs associated with the probate process.

We realize that estate plan options might seem complex at first. Our attorney is available for your questions and concerns. Contact Paula Montoya Law today, we are happy to guide you through the process.