Creating a Will or a Trust is an essential part of estate planning. However, because people generally only deal with their own or a loved one’s Florida Will or Trust once or twice in their lifetime, many people do not review their estate documents to plan their estate effectively.
What Is a Will?
Most people know what a Will is, or at least generally what it does; that is, it controls the distribution of your property, known as your “estate,” when you die and appoints a legal representative to manage your personal property.
A Will allows the writer to plan their funeral arrangements, leave inheritances to be paid to beneficiaries, and name guardians for underage children, whenever applicable.
What Is a Trust?
Trust, on the other hand, is more complex and can take many different forms. For one, while a Will has to go through probate for a court to determine whether or not it is valid, a Trust is the result of a legal agreement and does not have to be validated in probate court.
A Trust takes effect the moment it is created; the grantor of the trust allows the trustee to oversee its contents and dispense property to the beneficiary according to instructions stated within the Trust agreement. These benefits may be given out and revoked before the grantor’s death, after their death, or when the beneficiary reaches a specified age.
What’s the Difference Between a Florida Will and a Trust?
Even if one understand the difference between Wills and Trusts, knowing which is more appropriate for a specific set of circumstances is often difficult.
Trusts are often most appropriate when the grantor wants to leave specific assets to specific beneficiaries and maintain control over when and how they receive the assets. For example, when you set up a Trust, you can transfer only the asset you want the beneficiary to receive and determine when the beneficiary receives the asset.
On the other hand, Wills encompass all property and assets owned by the deceased at the time of their death and determine how the property and assets will be distributed to the intended beneficiaries.
Talk to our Florida Estate Planning Attorneys
Understanding the difference between Florida Wills and Trusts does not mean that you will not still need legal advice when planning your estate; in fact, legal counsel is highly recommended. The estate planning attorneys at Woodward, Pires & Lombardo, P.A. are happy to help you with your Florida legal needs. Contact us at (239) 394-5161 or visit www.wpl-legal.com for more information.
Related post: Revocable Living vs. Irrevocable Trusts: Differences that Matter