Though trusts and wills are both used to manage one’s assets after death, they differ markedly in the way they are implemented.
CAPE GIRARDEAU, MO, November 22, 2022 /24-7PressRelease/ — If you are starting the process of planning your estate in Missouri, trusts and wills are among the most important documents you should have. Though they accomplish the same goal, a will and a trust are different. Lead attorney Kelvin Birk from Birk Law Firm says, “Being able to distinguish between a will and a trust will help you make a more informed decision concerning your assets.”
What Is a Trust?
A trust is a fiduciary agreement or relationship between two parties in which the trustor grants another party, the trustee, the right to assets or properties for the welfare of a third party, i.e., the beneficiary. The trustor is the person who transfers their assets or properties, and the trustee is the person who performs this transfer to the beneficiary. Trusts provide legal protection to the assets of the trustor by ensuring that the assets are distributed according to the dictates of the trustee.
What Is a Will?
A will is a legal document that helps you direct the distribution of your assets after death to your designated heirs and beneficiaries. The person making a will is known as the testator, while the individual or organization appointed to oversee the testator’s estate after death is called the executor. A will may also include instructions on matters such as the appointment of the executor, designating guardians for minors and funeral and burial arrangements.
Trusts vs. Wills
Although there are many differences between wills and trusts, the most striking difference is that a will passes through probate while a trust does not. A probate is a court that oversees the administration of the will, ensuring that the will is valid and that the property is distributed as spelled out by the testator. In Missouri, this must be done within one year of the testator’s demise.
A trust passes outside of probate, saving time and money. Also, it can remain private, unlike a will which becomes part of the public record. Also, a will is designed to take effect after the death of the testator, while a trust takes effect immediately after it is created. Finally, a will allows you to name a guardian for children and specify funeral arrangements, while a trust does not. On the other hand, a trust can be used to plan for disability or to provide savings on taxes.
About Birk Law Firm
Birk Law Firm is an outstanding law firm in Missouri that renders a broad range of well-rounded legal services to clients. With this team of highly skilled and experienced legal practitioners on your case, clients can be confident of a favorable outcome.
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