A will and a living trust are both legal documents used to designate how your assets are distributed after you pass away. However, there are some key differences between the two.
A will is a document that outlines your wishes for the distribution of your assets after you pass away. It must be filed with the probate court after your death, and the court oversees the distribution of your assets to your beneficiaries. A will can be changed at any time during your lifetime, but it must be updated with a new version that includes the changes.
A living trust is a legal arrangement where you transfer your assets into a trust during your lifetime. You still maintain control over your assets, but they are managed by a trustee that you appoint. The living trust outlines how your assets will be distributed after you pass away. Unlike a will, a living trust does not go through probate, which means that your beneficiaries can receive their inheritance much more quickly. A living trust also allows you to maintain privacy over your estate, as it does not become a matter of public record like a will does. A living trust can be amended at any time during your lifetime.
As for which one to choose, it ultimately depends on your individual circumstances and needs. If you have a very simple estate with few assets, a will may be sufficient. However, if you have a more complex estate, a living trust may be a better option. It’s also important to consider your privacy concerns and the desire to avoid probate.
It’s important to note that there may be limitations or exceptions to the advice given depending on your jurisdiction or specific circumstances. It’s always a good idea to seek the advice of a licensed attorney to ensure that you’re making the best decision for your individual needs.
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