Will vs Trust?
Most of us are aware of the terms ‘will’ and ‘trust’ as legal devices used to pass on your assets and property to your heir or beneficiaries. Both will and trust, are estate planning tools meant for distribution of property among beneficiaries. However, the chief difference between the two is that whereas a will comes into effect only when you die, the trust becomes effective as soon as it is created.
What is a will?
A will is a legal document, created and signed by an individual, in the presence of witnesses, which lays guidelines for his property’s distribution after his death. It helps you define the details of your assets and name the beneficiaries whom you wish to benefit from them. The will also offers you the freedom to choose an executor who would manage the allocation of your assets and property after your demise. In the event of the absence of a will, the court has the right to appoint and administrator who would take charge of the distribution of our property. The will also allows you to specify a guardian to raise your children after your death. It is advisable to make a will for your children even if you are still a young parent. It helps appoint a guardian for them in the event of your untimely death, when they are still minors.
If a person dies without creating a will, he is said to have died ‘intestate’. In such cases the court decides upon the beneficiaries for the property and how it will be distributed among them as per the state laws. If an individual, who has already written down a will, is mentally or physically incapable of supervising his financial assets, the court has the right to appoint a guardian who would take charge of managing it for him.
After the death of an individual, his will is administered through a probate proceeding established by the state laws. The probate is a set of laws and proceedings that governs the procedure of execution of the will with the help of a lawyer or an attorney.
It is a legal device, wherein an individual or a company is named as a trustee that takes care of, and manages the assets for the beneficiary. A trust mainly comprises of three parties namely the grantor, the trustee and the beneficiary. The grantor is the person who creates the trust for his own property and assets. A trustee holds and supervises the property for the grantor for the benefit of the beneficiaries. The beneficiary is the one that gets the benefits of the trust created by the grantor. Some states offer the provision to the grantor of naming himself as the trustee.
Unlike a will, the trust does not require to be administered through the probate process. In addition to this, if the grantor is unable to manage his assets, the trustee has complete right over its supervision without the involvement of court.
There are plenty of Law Firms in Florida that provide sound legal advice on the laws applicable to these will and trusts. If you live in in Volusia County, New Smyrna Beach, Port Orange, Daytona and surrounding areas, and are looking for legal solutions you may check out the website http://www.simmslawfirm.com/.