The Truth About Living Trusts vs. Wills
Introduction
When it comes to planning for the future, many people are unsure whether to choose a living trust or a will. While both are important estate planning tools, they serve different purposes and offer unique benefits. At DK Law Group, we help you understand the differences between living trusts and wills so you can make the best decision for your situation.
What Is a Living Trust?
A living trust is a legal arrangement where you transfer ownership of your assets into a trust while you’re still alive. You can serve as the trustee, managing the assets, and you can also designate a successor trustee to take over when you die or if you become incapacitated. What Is a Will? A will is a legal document that outlines how your assets will be distributed after your death. It also allows you to name a guardian for minor children and an executor to manage your estate.
Real-Life Example
Imagine you own a home, a savings account, and some investments. By placing these assets in a living trust, you can continue to manage them as long as you’re able. If you become incapacitated, the successor trustee can step in to manage your affairs without the need for a court-appointed guardian. Upon your death, the assets in the trust are distributed according to your wishes, bypassing probate.
Benefits of a Living Trust Over a Will
Avoiding Probate: Assets in a living trust do not go through probate, which can save time and money for your heirs.
Incapacity Planning: A living trust allows you to plan for the possibility of becoming incapacitated, ensuring that your assets are managed according to your wishes.
Privacy: Unlike a will, which becomes a public record during probate, a living trust remains private.
Conclusion
While both living trusts and wills are essential tools in estate planning, a living trust offers additional benefits such as avoiding probate and providing for incapacity. At DK Law Group, we can help you decide whether a living trust, a will, or a combination of both is the best approach for your estate plan. Contact us today to learn more.
At DK Law Group, we make complex decisions feel simple and manageable, helping you achieve the peace of mind you deserve. For inquiries or further information, you may contact us directly at (443) 739-6724 or send an email to diana@dklawmd.com. We look forward to assisting you.