Major life changes—marriage, divorce, the birth of a child—can all lead to an individual considering their end-of-life choices. Estate planning, then, becomes a crucial step in achieving peace of mind. Within that larger rubric, though, estate planning requires numerous documents to be drafted. The two most common are trusts and wills.
What are trusts?
It is a legal arrangement where the trustee holds and manages beneficiary assets. Trusts can offer several benefits for succession planning, which include:
- Trusts bypass the probate process and can ensure a quicker distribution of assets
- They are not public records, so your estate details are private
- You can specify how and when beneficiaries receive assets
Meanwhile, trusts do have drawbacks, which include:
- More costly to set up
- More complex and require ongoing management and legal oversight
- Require regular updates to reflect changes in assets or beneficiaries
- May have issues with assets outside documentation with no will present
You can opt for different types of trust, which may depend on specific needs and requirements.
What are wills?
A will is a legal document that outlines the distribution of assets after your death. In Sacramento, wills are a common choice for determining who gets what after your passing. Here are the benefits if you choose to employ a will. They:
- Are more accessible and less expensive to create
- Are flexible and easier to update as circumstances change
- Can name guardians for minor children
On the other hand, these are some issues you may have to navigate when drafting a will which includes:
- Needing to go through probate to set up a will, which can be time-consuming and costly
- There is no guaranteed privacy, as wills are public records
- No control over the distributed assets
There are ways to avoid going through probate; however, this will depend on the lawyer you employ to help you.
Choosing what’s right for your family
In the end, estate planning is not as straightforward as choosing which legal document is better. A will requires probate, and a trust is more flexible, but both complement each other, allowing for a swifter and smoother process. Consulting with a legal professional can help you handle these processes and ensure your family’s future.
