After a person’s demise, his or her family members are the one that has to handle the essential legal and financial matters that they have left behind. Such matters become easier to deal with if the deceased person has had a good estate plan under the guidance of a Reno Estate Planning Attorney. Such efficient planning in the past helps reduce conflicts and disagreements between the family after you pass away. A will mentions how your assets will be distributed after you pass away. A trust is a legal arrangement where the individual places their assets in the trust’s name and appoints another party to manage it on behalf of the beneficiaries.
Trust and wills – All you need to know:-
- What is a will?
A will or testament is a legal document that states your wishes on how your assets and other possessions will be passed on to the family members after your demise. For creating a will that includes all necessary items you must take the help of an attorney who will advise you to appoint someone to be the Executor of your estate. The executor will help in the probate process. A will also give you an added advantage if you have minor children. It provides you the opportunity to nominate a guardian for the minor child.
- What is trust?
A trust is a legal agreement where the owner of the estate places their estate in the trust’s name and appoints a third party to manage it. The trust is established by a Settlor who transfers the estate to a Trustee. The trustee holds the estate on behalf of the settlor and their beneficiaries.
- How is trust administered?
The Trustee administers the trust. The trustee’s responsibilities are communicating with beneficiaries, managing trust assets, distributing trust assets, keeping trust records, filing trust taxes, etc.
- Should I use a will or a trust to distribute my assets?
Whether you should use a will or trust depends on your estate size and circumstances. If you have a small estate without any minor children, then a will is enough. But if you have a huge estate and minor children who will inherit your assets, a trust is a good choice to transfer your estate.
Every individual should think about estate planning. For this, they must hire an experienced estate planning attorney to advise them on what to include and what not. Based on your need you must decide whether you should have a will, trust, or both of them included in your estate plan. A seasoned estate planning attorney will help you through the process of creating a will or trust as per your need and circumstances.