Fort Collins Trust Planning Attorney
If you are thinking about estate planning right now, you are on the right track. While it may be difficult to think about dying, it’s inevitable and even more problematic to leave your family without a good plan when nature takes its course. Although wills and trusts are two different estate planning tools, there is a lot of overlap. Ultimately, both make sure your assets are granted to the person of your choosing without any issue. If you need help with estate or trust planning, Brady, McFarland & Lord, LLC is here to help you. We can help set up a trust or draft a will. While we will help you every step of the way, we also think it’s essential that you know the difference between a will and a trust so that you can be an active participant in your estate and trust planning. Contact us today at (303) 420-2863 or contact us online to set up a free initial interview.
What Is the Difference Between a Will and a Trust?
Despite the commerciality of these words, not everyone knows the difference between them. These differences are essential to know so you can decide if a will can meet all of your needs, or if you also need assistance in setting up a trust.
This is one of the significant differences between both estate planning tools. A will does not take effect until you pass away, while a trust can take effect immediately after you create and fund it if you wish. Wills are subject to amendment throughout the course of your lifetime. You can update, revoke, or completely rewrite your will anytime you wish. When you pass away, your assets will be passed down to your beneficiaries as you wrote in your will.
Trusts, on the other hand, provide lifetime and after-death surety of your assets. This means as long as you have created and funded the trust, your assets will be legally managed for you throughout your life and once you pass away.
This is another crucial difference to note, especially for people who like to keep their business private and off-record.
A will must go through probate when the grantor dies. This is so the court can examine the will, see that the assets are appropriately distributed, and ensure that the will was legally drawn up and executed. This process can become particularly messy if someone disputes the validity of the will.
A trust, however, cannot be contested. A trust can entirely bypass probate as it does not need to undergo any legal proceedings before the assets are transferred to the beneficiaries. This means that a trust can remain completely private.
With a will, you can leave any property you own to whomever you wish upon your death. However, if you own the property with someone else, this can complicate things. There might be a dispute about who is legally entitled to your portion of the property.
On the other hand, a trust can only distribute properties or assets that have been transferred into it. If you have a joint business or property, as long as it is properly placed in a trust, a dispute is unlikely to occur.
Contact Our Fort Collins Trust Planning Lawyers Today
Remember, wills and trusts both have unique advantages and disadvantages. You should always have a will, but in some circumstances, creating trusts can be a helpful addition to your estate plan. If you need help with a will, trust, or any other estate planning issues, our Fort Collis estate planning attorneys are here to help. Contact us today at (303) 420-2863 or contact us online to set up a free initial interview.