There are many different kinds of wills and trusts, which are a part of the whole estate plan process. Both of these documents work hand-in-hand with the rest of the important estate planning documents. While they both decide the way in which your assets will be distributed, each also serves a particular purpose. Understanding the differences between wills and trusts will help you make more informed choices when you develop an estate plan specifically tailored to your unique circumstances… Interested readers can find more information about them at Thomas-Walters, PLLC – Chapel Hill Wills and Trusts Attorney
A will is created by a legal document that names who will control your assets after your death, and the names of all intended beneficiaries. The primary objective of a will is usually to ensure that your beneficiaries (potential buyers of your estate) get what they are owed after you die, regardless of any errors or omissions made in the drafting of your will. A will be reviewed by a judge before it becomes a valid document and can only be revoked by a court order.
A trust is created by a legal document that names a trustee. The trustee is responsible for managing the assets owned by the trust, by dividing them into separate accounts for specific purposes, and by distributing your inheritance according to your instructions. Unlike a will, the primary objective of a trust is to safeguard your assets from any abuse by creditors or other means, and the process of establishing a trust is not as involved as a will. You should consult a qualified wills and trusts attorney if you are considering using a trust to protect your assets.