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.