Deciding to create a will or living trust isn’t an either/or scenario. They are different estate planning tools and, although rare, some clients’ estate plans include both. In most cases, a single consultation with an estate attorney can determine whether you’re best with one or both options to move forward making estate plans in an informed way.
Many people mistakenly believe that trusts are for the wealthy. This is not the case. Even singletons and couples without children benefit from wills, trusts, and other types of estate planning.
Will Or Living Trust
First, let’s review the differences between a will and a living trust.
Wills (Last Will & Testament)
Wills are what most people think of when they imagine making end-of-life plans. They are simple, legal documents outlining your wishes after you die. Wills cover estate planning essentials, such as who will get what when you die. This ranges from the total cash value of your liquidated assets (properties, houses, collectibles, owned cars or toys, etc.) and your possessions.
Your will can be as simple as “When I die, I want everything to go to my oldest sister…” to a very long and lengthy list of family, friends, and charities or organizations you want to give something to after you pass away. They can also be more in-depth, naming your chosen trustee/executor, including information about who becomes the guardian of your child(ren) (or pets) if you die while they are minors, forgiving personal debts, or stating repayment amounts for private debts you carry that aren’t on record, and so on.
Wills are revocable, mean