Some may believe that there’s a certain time to start planning and creating a will or trust. However, it’s never too early or too late to start speaking with an attorney about estate planning.
There are a few differences between wills and trusts, and you may not know which one you would want. But everyone should always consider having an updated will. Here are the differences between wills and trust.
What is a will? A will is a document that lists and covers your property that is in your name when you pass away unless it’s in a trust. There are two types of property that can be covered with a will called probate assets and non-probate assets.
What are Probate Assets?
Probate assets are assets that you own in your own name, or individually when you pass. These types of assets are subject to a court’s jurisdiction and would become part of your estate after death and are a part of your will.
What are Non-Probate Assets?
Non-probate assets are assets that are paid out after your passing. This could include payments to a beneficiary and the rights of a surviving spouse to your assets. These kinds of assets are not controlled by your will and are set by whoever is named as the beneficiary in your will.
If you have a lot of valuable assets, creating a trust would be a good choice for you. A trust is a legal arrangement that allows a trustee (an individual of your choice) to hold the legal title to your property for your beneficiary.
There are two types of beneficiaries under a trust. One of the beneficiaries would receive payment from the trust and the other would receive what is left over after the first beneficiary dies.
A trust only covers property that is transferred to the trust and put in the name of the trustee.
Estate Planning Attorney in Charlotte
Before you take any steps to create a will or a trust, you should always consult with an attorney. Our attorneys at Rech Law, P.C. help families create wills and trusts frequently. We can help you draft a legally binding estate plan so that you can feel relieved knowing that your family will be taken care of.
Call our office today at (704) 659-0007 to schedule your consultation and create your estate plan.