What is the Difference Between a Will and a Trust?

Difference Between a Will and a Trust

The major function performed by a will and a trust is similar. Wills and trusts form the estate planning that makes sure that the concerned trusted parties will distribute your assets according to your wish. This is applicable only upon your death. Wills and trusts ensure that your assets do not get squandered. They also protect your assets from fraud and other crimes. For estate planning in Miami, Get a lawyer for your assets now! A skilled attorney from Miami Probate can advise and represent you concerning estate planning.

Keeping a will or a trust handy enables your assets and other funds to stay with the people you trust. In this way, nobody will be able to lay a claim on your assets after your death. However, there are certain differences between a will and a trust. Let us look at these differences in detail.

Difference between will and trust – Estate planning law firm Miami basics

A will has to be presented in the probate court. This makes the distribution of your assets a public affair. The proceedings will take place via the court and the lawyers will take care of everything. In case of a trust, the asset distribution takes place in private. Without the involvement of the probate court, the asset distribution will remain private to your beneficiaries and your family.

Advantages of having a trust over a will

Before delving into the benefits of having a trust over a will, it is essential to know what a trust is. A trust involves the collection of your assets in such a way that they can be transferred easily after your demise. In case you decide to build a trust, you will have to choose a manager. Usually, people appoint wills and estate planning Miami attorneys or their family lawyers in this position.

You could also appoint a trusted family member or friend to keep your trust safe after your death. They will have to ensure that the assets are fairly distributed. You can also appoint yourself as the executor of your trust. This is valid as long as you are mentally stable and not bankrupt. Wondering how to get a trust made? Check out Miami Probate estate planning solutions.

Primary benefits of having a trust

The major benefits of a trust include the following:

  • The speed with which your beneficiaries will receive the allotted assets is greater than when you deal with a will.
  • A trust does not have the probate court as an intermediary. This means that the legal hassles are much less.

Legal challenge

Before deciding between a trust and a will, the idea of legal challenges must be taken into account. Florida Statuses 736 has made sure that building a trust will require the presence of lawyers. Your trust will be created using legal jargon and following all legal principles pertaining to the state of Florida. This means that the heirs or beneficiaries will find it extremely difficult to file legal challenges against the declarations in the trust. With our Miami legal team, challenges never stand. So, book an appointment now!

With less number of legal challenges, your estate will not lose an exorbitant amount of money defending the declarations in the trust. This means more money and fewer hassles for the beneficiaries.

Rules to build a trust

To build a trust, you must follow certain legal rules. These include the following:

  • Creating a living trust or a revocable living trust requires a granter and an attorney.
  • The granter is the person who owns the estate or the assets based on which the trust will be built.
  • The attorney will create the trust using legal jargon. The basis of the trust will be the direction of the granter.

Rules for trustees

After the attorney draws up a document and creates the trust, the trustee(s) have to be appointed. They function as the managers of the trust. The rules that trustees have to follow include the following:

  • The trustee has to manage the funds included in the trust.
  • The trustee must pay any bills incurred for the trust.
  • The trustee can take decisions regarding the investment of the money in the trust.
  • The Consumer Financial Protection Bureau (CFPB) has all the rules that trustees have to follow in the state of Florida.

What is a will?

A will is a legal document that your lawyers draw up for you. At least two witnesses have to sign it to confirm that the will has been dictated by you and that it is valid. A will provides information and directions for managing your estate and your affairs after your demise. Our expert team of lawyers is at your service. Get started now!

Benefits of a will

The benefits of a will are varied. They are as follows:

  • A will is usually easier to draw up than a trust. This is because the legal jargon for a trust is immense. A will is only a single document.
  • Creating a will does not require a team of lawyers. Therefore, the legal charges involved in the creation of a will are much less.
  • In case of wills, a trustee is not required. The lawyers will follow what you have directed, and the beneficiaries will get the shares accordingly.
  • A will is a non-complex legal document for those whose estates are neither huge nor overly complicated.
  • Other than just legal duties, a will also let you provide instructions for your funeral and memorial service.

Which is better – will or trust?

What would most estate planning attorney in Miami say about the question above? The best way to protect your estate and assets after death is by creating both a will and a trust. This ensures a two-layer security system locked in place to protect your financial assets.

It also depends upon your estate and the beneficiaries involved. If the estate is small and the beneficiaries are not hostile toward each other, then having a simple will would be enough.

In case the estate is large, and the assets are complicated, building a trust would be a clever way to manage the money. This is also valid when the beneficiaries are minors (children). They will draw the funds and take over the estate once they come of age. Having a trusted trustee to manage the affairs till then is a great idea.

Trust vs will – which wins in court?

In case a legal dispute arises in court over the trust and the will you create, remember that the details in the trust will override those in the will.

Protect your estate, your assets, and the beneficiaries involved. Get in touch with Miami Probate Estate Planning and Attorney Services now!

Luis E. Barreto