Benefits Of Having A Trust Over A Will

A will is often the first thing people think of when they want to distribute their assets after death, but that doesn’t mean it’s the best option for everyone. In fact, there are many benefits to choosing to make a trust over a will. Read on to learn more about these advantages.

A Trust is Portable

When you create trust, you don’t have to worry about transferring it to different states or countries. If you move, your trust will move with you. For this reason, wealth management experts recommend that their clients use trusts as their clients will have their assets in place wherever they may reside at any given time. This is especially useful if you own real estate abroad.

Beneficiaries May Change

A trust allows you to change beneficiaries at any time, while a will is created once and cannot be altered. This means that if your family structure changes or you’re no longer comfortable with your executor, there’s nothing to stop you from changing these things later on. If you create a will and then die unexpectedly, that could be potentially problematic for your beneficiaries and cause major headaches for them. With a trust, all these worries are eliminated.

Avoid Probate Fees

One of the main reasons people create trusts is to avoid probate fees. Probate fees are expensive and can take up to six months or more to go through court. If you leave your money in a will, it will go through probate before being distributed to your beneficiaries. Avoiding these costs has obvious financial benefits and is likely enough reason to switch from a will to a trust in some situations.

You Have More Options

In a trust, you have the opportunity to include more details. For example, you can name anyone you want to take on certain tasks for your children, like caring for them or helping with their finances. A will limit you to blood relatives who can serve as executors and guardians. Additionally, with a trust, you can leave money directly to people and organizations that were important in your life.

Estate planning can be confusing, especially when it comes to understanding what options are best for you and your family. While both a will and a trust offer several benefits, knowing how the two types of documents work will help you decide which is best. Keep this information in mind as you learn more about how to best distribute your assets.