Estate planning attorneys are frequently asked by clients if they should have a will or a trust. Let’s explore the difference between the two documents.
A Will
A Will is a document that is used when you die to dictate how you want your assets to be distributed to your chosen beneficiaries. A Will can also allow for a parent to appoint a guardian or conservator for their minor children or legally disabled dependents, should anything happen to the parent.
A Will does not allow your survivors to avoid the stress and costs of a probate estate proceeding in your county probate court. The costs in attorney fees and related expenses for probate estates can be expensive. The administration process can also take a long time to conclude. The Will also must be filed with the probate court for administration meaning that document becomes public record.
A Trust
A common misconception is that a Trust is only utilized by large asset clients. The reality is that any person can have a Trust. There are several types of trust under the law, but a revocable trust is the most common trust used at Martin L. Rogalski, PC. A Trust creates a separate legal entity that will outlive you. The Trust will nominate the trustee who holds and manages the assets for the trust’s beneficiaries. A revocable or living trust means that you can amend (alter) your trust, or if necessary, revoke the document. Trust instruments remain private. A Trust is the main tool used to avoid a probate estate.
It is essential that you work with your attorney to make sure that your assets are properly placed into the trust. Failure to properly fund your trust can result in a probate estate in addition to a trust administration.
While the choice of having a will or trust is ultimately up to the client, the staff of Martin L. Rogalski, PC is experienced in helping you determine what estate planning documents would be the most advantageous for your situation. Contact us today at 616-457-4410 or complete our contact form.
