Your estate plan can contain several documents, including a will and a trust. Both wills and trusts serve the same primary purpose of ensuring that your assets are transferred to the people you intend after your death. Yet, having a will is not the same as having a trust. Should you create both a will and a trust, or is having only one of the two enough? Wills and trusts each have their own strengths and weaknesses in an estate plan, and it may be appropriate to have both depending on your circumstances.
What Are the Differences?
A last will and testament is a document that indicates your wishes following your death, such as:
- Naming who will inherit each of your assets
- Appointing someone as the guardian of your children
- Giving instructions for your funeral
A will does not activate until after you have died. All assets that you include in your will must go through probate court, which can delay distribution to your beneficiaries and incur court and legal fees.
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