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Even if you know very little about the differences between a will and a trust

There is probably at least one thing you're aware of: creating and maintaining a trust can be a lot more expensive than having a will drawn up. And traditionally, this has been the case. A family trust can be more economical than only having a will in the long run, but before you dismiss the possibility of a family trust out of hand, you should know that there are options suitable for nearly any budget. And considering how much money can be saved by transferring assets through a trust rather than a will, this course of action could actually end up being more economically sound in the long run. With a bit of knowledge about wills versus trusts, you can find the estate plan that's right for you.

Transfer of assets after your death

First, you should know that a will is designed to legally transfer any assets that are in your name to a beneficiary (or several) at the time of your death. It does not transfer assets that are held jointly, though, so even if you want to leave your house to a child in your will, you probably can't if your spouse's name is also on the title. It's important to understand that a will does not protect your main asset (most likely your home) or other assets.

Transfer of assets while you are alive

A trust also transfers assets, but it works in an entirely smarter way. If you're looking to protect your family home, this is almost certainly a better option. The reason is that a trust transfers the assets out of your name and holds them in trust for another person. You maintain control of the assets until such time as you decide someone else may be more effective in the trustees role. After your passing, those assets remain in the trustees names and remain having to be managed in the best interests of the beneficiaries.

Minimise the high cost of estate administration

You can also use a trust to transfer other assets before you die. And by using a trust instead of a will, your beneficiaries can minimise the high costs involved with estate administration. This method of asset protection is an excellent way to preserve wealth and ensure that whatever you leave to your young family is transferred intact.

Transfer assets in the most cost effective way

Whether you're interested in a simple family home trust or your estate is more complex, you want to make sure that your assets are not only legally transferred to beneficiaries at the time of your passing, but also that they are protected until that time. And with trusts becoming a more popular choice for safeguarding and passing wealth, there are affordable options available to help you protect your young family's future. So don't hesitate to explore all options.

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