What are the possibilities?

There are several options to consider when it comes to making your final wishes known and passing along wealth and assets to beneficiaries. Wills and trusts are two main types, although within these categories there is a host of possibilities for what you can do. The only real question is: which one should you choose? You'll need to weigh the advantages and potential drawbacks of each device before you can make an informed and suitable decision.

Spelling out your final wishes

The best thing about creating a last will and testament is that you can spell out your final wishes, including provisions for medical care, treatment of remains, instructions for a funeral/memorial service, and so on. Wills are also a great option for passing along items of little monetary value, such as sentimental family heirlooms. Unfortunately, wills also have to go through the probate process, which means valuables contained within could be subject to seizure to pay outstanding debt, even if you have named beneficiaries.

I want protections while I am still alive and kicking

When it comes to asset protection, utilizing family trusts could be a better choice. This type of structure is designed to hold property until such time as you deem the ownership should be passed along to a beneficiary. In other words, it takes assets out of your name, effectively eliminating any claims related to your personal or business debt. If, for example, you place your primary residence in a family home trust, it will be protected for beneficiaries (your spouse, kids, etc.) during your lifetime and in the event of your death. This isn't to say that a trust cannot be contested, but it won't have to go through the probate process like a will, so beneficiaries will receive ownership of assets promptly.

Different ways to achieve the same goal of transferring assets to loved ones

The long and short of it is that wills and trusts simply provide different means of accomplishing the same goal. Their structures, rules, and benefits set them apart from one another, but there are definitely advantages and drawbacks associated with each of these forms estate planning.

Most use both Wills and Trusts to benefit their lifestyle

You'll have to consider your personal needs and what you intend to pass along to loved ones before you choose one over the other. The truth is that most people will gain the most benefit from setting up both a will and family trusts. If you want to gain the best protections and ensure that your end-of-life wishes are fulfilled, consider using both of these methods when estate planning.

So why not learn more and register with TrustUs today.

After all, it's in your hands.