Creating a comprehensive estate plan is important in order to set forth your wishes on how you want your assets to be distributed when you pass away. If you’re starting your estate planning process, it is important to understand the difference between a will and a trust to identify which legal document is best suited for your estate plan. Our Rockford estate planning lawyers explain the difference between a will and a trust.
What Is a Will & a Trust?
A will is a legal document that contains specific instructions for how you want your estate to be handled after your death. By creating a will, you can protect your real estate property, bank accounts, business assets, valuable objects, investments, and more. All the assets you’ve accumulated through hard work can be left to your loved ones when you create a will.
A trust is another written estate planning document that contains detailed instructions for how your assets should be managed during your lifetime and how they should be distributed after your death. A trust provides a safety net for your assets in case you no longer have the physical or mental capability to manage them due to an unexpected accident. A trust allows a third party, also known as a trustee, to hold assets on behalf of you or your beneficiaries.
A trust can also be beneficial because it can minimize estate taxes, avoids probate, and can allow your beneficiaries to receive your assets after. Compared to a trust, a will solely provide detailed instructions for distributing your estate.
Experienced Rockford Estate Planning Attorneys
If you want to create an estate plan, but you’re not sure what legal documents you need, our team at Reno & Zahm LLP is here to help you. With nearly 100 years of experience as a firm, our attorneys are dedicated to finding the best estate plans for our clients. We can help you make the arrangements needed to ensure your assets remain in the right hands.
Contact our Rockford estate planning lawyers today at (800) 639-1488 to schedule a consultation!