Will vs. Trust

Will vs. Trust

The terms “will” and “trust” can be confusing and misunderstood. It is important to distinguish the difference and understand what both these concepts really are.

What is a will?

A will is a legal document that help coordinates the distribution of your assets after death and can appoint guardians for minor children. A will is important because it allows you to communicate your wishes clearly at your death. Without a will, the state of residence will distribute your assets to your beneficiaries according to its laws. Having the state distribute your assets may not result in how you would distribute your assets to your beneficiaries. Having a will drafted will help avoid the state from distributing your property. A will can generally contain a designation of an executor, who carries out the provisions of the will. It also contains beneficiaries, which are those who are inheriting the assets. It also has instructions for how and when the beneficiaries will receive the assets, and names of guardians for any minor children.

What is a trust?

A trust is an agreed upon relationship between a trustor and a trustee. The trustee holds the assets of the trustors on behalf of a beneficiary. Trusts are established to provide legal protection for the trustor’s assets to make sure the assets are distributed according to the wishes of the trustor. A trust can save time, reduce paperwork, and even reduce inheritance or estate taxes.

What is the difference between a will and a trust?

One main difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect right after you create it. A will usually directs who will receive your property after you die and appoints a legal representative to carry out your wishes. A trust can be used to begin distributing property before death, at death, or afterwards. A trust is a legal arrangement for which a “trustee” holds legal title to property for another person, called a “beneficiary.” There can be two types or sets of beneficiaries. One set receives income from the trust during their lives and the other set receives whatever is left after the first set of beneficiaries die.

How Certified Field Agent can help!

Beneficiaries of wills and trusts may need to search accounts for documents upon the death of a trustor. If a trustor misplaces the original documents, they may need copies of the documents as well. Certified Field Agent can help locate will and trust documents. Rest assured that your will and trust papers will be retrieved in a timely manner with Certified Field Agent. Give us a call today at 714-632-3480 to get started!