When it comes to estate planning, most people know that a Will is important. People even try DIY wills because they’ve been told how important getting an estate plan in place is. However, sometimes a Trust is a better option for what they are trying to accomplish.
What does a will do?
A will “gives things away.” I give you my house. I give you my car. You can do with it what you wish.
With the will, when you give your assets away, there’s nothing else you can do or say because, at that point, it belongs to them.
What does a trust do?
A trust allows you to tell those people who you are giving items to what you want done with the items you give. I give you my house, but you can’t sell it until my children graduate from high school. Then, you can sell it and split the proceeds between my children evenly. At your death the trust owns the property and the trustee (the person responsible for making sure your wishes are followed per the document) gives your assets to the beneficiaries in the manner that you outline in the trust. They have to follow what that document says.
For example, you want to give some money to your niece who is a minor. Instead of giving the money directly to her, you give it to your brother because you feel like he will manage it in a manner that is consistent with the best interest of your niece. However, the money belongs to your brother if you give it to him through the will. He does not have to give anything to your niece. The best way to make sure that they are able to benefit is through a trust or to give it to the person directly
If you have any questions or want to speak to us about a particular estate planning issue feel free to reach out to us at 678-680-4866, text us using the dialogue box to your left, chat with us using the dialogue box to your right, or schedule a consultation here.