Irrevocable Trust vs Will

1. Comparing An Irrevocable Trust vs Will We never know what could happen to us tomorrow. Which is why it is so important to create a comprehensive estate plan today. But what type of estate plan is right for you? There is so much information out there on internet about estate planning, it can be really easy to get confused. Two options people often consider is an irrevocable trust vs will. One of your questions is probably which of these two estate planning documents is better? It depends on your situation. See, these are two very different legal documents that achieve different goals. In this article, we will walk through the features of each document so you can get a better understanding of an irrevocable trust vs will. Last Will and Testament A last will and testament is one of the most well-known and popular estate planning documents. Also known as a will, this document is relatively straight forward to prepare when you use the services of an estate planning attorney. Having a will in place before you pass away allows you to protect your family and ensure they receive your assets according to your wishes. When you create a will, you can specify who should receive your home, money, and other assets after you die. You can also determine what amount each person should receive.

2. If you have children under the age of 18, you can designate a guardian and conservator to make sure your kids are taken care of and any assets you leave behind for them are properly managed. Lastly, you can appoint a personal representative to settle your estate on your behalf and make sure that your assets get distributed to your family according to your wishes. Make sure you select someone you trust because this is a really big responsibility. While a last will has a lot of benefits, it does have some drawbacks as well. One of the major disadvantages of a will is that it does not avoid probate court. When you die, your will must go through probate before your family can get access to your assets. This can be a long and stressful process for your loved ones to go through while dealing with the loss of a family member. A lot of people wish to avoid probate court. If this is one of your goals, you may want to consider a revocable living trust, because it avoids probate court. Another drawback of a will is that it only goes into effect when you die. This means that it offers you no protection while you are living. Now, you might be asking, why would you need protection while you are alive? It is very common for people to become incapacitated before they pass away. As a result, incapacity planning is a big concern for most people planning their estate. Since a will only goes into effect when you die, it doesn’t protect you in cases of incapacity.

3. However, other estate planning documents like a living trust, power of attorney, and living will do. If this is a concern for you, schedule an initial consultation with an estate planning attorney. They can give you customized advice based on your needs. Next, we will discuss the features of an irrevocable trust so you can get a better understanding of an irrevocable trust vs will. Irrevocable Trust An irrevocable trust is different from a last will and is used for very specific purposes. Unlike a last will and testament, an irrevocable trust can’t be changed after it is created. These legal documents are often created when planning for a special need family member. Additionally, some people use them to achieve certain tax or credit advantages. When you create an irrevocable trust, you put your assets in the trust and assign a third party as the trustee. Once the irrevocable trust is signed and legally binding, you no longer have control of the assets. As a result, you need to be really sure that you want to put your assets into this type of trust. Conclusion

4. When comparing an irrevocable trust vs will, know that each is a very useful estate planning document used for different scenarios. A last will is useful when trying to plan how best to pass your assets onto your loved ones after you die. It also gives you the ability to name a guardian for your children and appoint someone you trust to settle your estate. An irrevocable trust is used for very specific purposes such as planning for a family member with special needs or trying to achieve tax or credit advantages. If you are interested in drafting a will or a trust, give us a call at Rochester Law Center to speak with an experienced estate planning attorney. We’ve helped 1,000s of clients in all matters of estate planning. Call us today at (248) 613-0007.