Chicago Estate Planning & Differences Between a Will and a Trust
Wills and Trusts are useful estate planning devices which serve different purposes. Both work together to create a complete estate plan.
One main difference between a Will and a Trust is that a Will goes into effect only after you die, while a Revocable Living Trust goes into effect as soon as it is created and funded. A Will directs who will receive your property at your death, and it appoints a legal representative to carry out your wishes. A Revocable Living Trust can be used to distribute property before your death, at your death or afterwards.
A Will covers any property that is only in your name when you die. It does not cover property held in joint tenancy or in a Trust. A Trust covers only property that has been transferred to the Trust. In order for property to be included in a Trust, it must be put in the name of the Trust.
Another difference between a Will and a Trust is that a Will passes through probate. That means a court oversees the administration of the Will and ensures the Will is valid and the property gets distributed the way the deceased wanted. A Trust passes outside of probate, so a court does not oversee the process. Unlike a Will which becomes part of the public record and can be accessed by anyone, a Trust can remain private.
Wills allow you to name a guardian for children and specify funeral arrangements. Trusts can be used to plan for disability of beneficiaries and to save on taxes
Contact your estate planning attorney for more information.
