Most people have heard of “will” and “trust” but not many are clear on the differences between the two. Both are important estate planning tools which serve different purposes, and they can work together to create a complete estate plan.
A will is a document with which you can express your intentions and give instructions on how your estate is distributed upon your demise.
On the other hand, a trust is a legal arrangement between a settlor and a trustee, which shows assets which are set aside for a trust for the trustee to manage for the benefit of others (the beneficiaries).
You can elect someone who you trust to handle your affairs and your estate as an executor.
If you don’t have a legally binding will, the state will decide who gets what.
A will establishes legal guardianship of your children if they are still minors so you will have a piece of mind.
You can amend your will at any time.
Reduce stress and headache for loved ones. A will that clearly outline your wishes for funeral arrangements and property distribution will reduce confusion and family disagreement during a stressful emotionally difficult time.
Expedite the legal process. It is generally faster and less costly to settle an estate with a valid will. Reducing legal fees protects the value of your property and savings to be passed to beneficiaries.
To manage and control the spending and investments to protect beneficiaries from poor judgment and waste.
To protect the trust assets from the creditors.
To protect premarital assets from division between divorcing spouses.
To set aside funds to support the settlor when incapacitated.
To manage closely held business assets for planned business succession.
With the vast expertise of financial solutions TFA provides, you can be assured that you will be getting the best plans/solutions that will cover all the gaps in your portfolio.
