The Difference Between a Will and Trust

Everyone needs a will, but not everyone may need a trust, so what’s the difference? Let’s find out.

We don’t like talking about death and this topic is a bit morbid, but we have to talk about it.

A will is a document that tells your loved ones how to share your assets after you die and it isn’t active until you die. With wills, your heirs will have to go through probate—a legal process that is done in the court and its public record. A trust also determines how your assets are managed BUT is active while you’re alive—as soon as you create AND fund it.

With trusts, sometimes you can minimize or avoid probate altogether. FYI, everyone needs a will—think of it as a failsafe that can:

• Give you a say in where your assets go, which you should have because you worked hard for them, period.
• Prevent family feuds over assets—nobody wins when the family feuds.
• Help you maintain a legacy of philanthropy if giving back is big for you.

If you’re going to create a trust, I want you to avoid this big misstep a lot of people make when having a trust—you gotta make sure it’s funded! After your trust is notarized, make sure the proper assets are retitled into your trust’s name.

Thank you for sticking with me, I know that was a lot!

Found this tip helpful? Come back each day for more of Greenwood Daily.