What’s the difference between a trust and will?
A will and living trust sound like very similar ideas but they certainly are not. Everyone should have a will but not everyone is meant to have a trust. Both are definitely beneficial but read below to see exactly what both are meant for.
Living trust
A living trust goes into effect as soon as you create it and can be used while living
A living trust covers property that has been transferred into the trust. For a property to be included, it must be put in the name of the trust.
Once named in the trust, properties with joint ownership can be included as an asset
The trust and its assets pass to the beneficiary outside of probate. A court does not need to oversee the process, which can save time and money.
Setting up a trust can cost anywhere from $1,000 to $3,000 depending on attorney billing rates and where you live
A living trust does not include provisions to name a guardian or to specify directives and funeral wishes
Last will and testament
A will takes effect after you die
You can name a guardian for children in your will
You can specify funeral arrangements in your will
A will covers assets that are only in your name
Property held in joint tenancy or in a trust cannot be disposed of in a will
A will passes through probate, which means a court ensures it is valid and oversees the administration
Setting up a will can cost about $60 for an online service to a few hundred dollars for an attorney to complete
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