If you are like other individuals who are not really keen on getting the services of a lawyer for your estate and trust needs, perhaps a little enlightenment about the subtle differences between the two concepts can help. Many individuals use estates and trusts interchangeably. And while it is understandable that these are legal mechanisms that allow you to effectively manage or administer your assets, there are unique differences between the two.
First and foremost, it must be understood that everyone will be leaving behind something when they die. These can include houses, vehicles, stocks, businesses, credit lines, and yes, even debts. Technically, all of these can be appropriately identified and pre-managed in a will. In case, you failed to execute a will and you died perhaps rather abruptly, then the state will have to administer the division of your estate – or the sum total of all your assets and liabilities – to whoever it deems worthy to receive your assets. For the surviving family, this can be a very tedious, and oftentimes very stressful, process. Estate administration, therefore, occurs during the probate process and will only occur after your death.
Now, if you are still alive, those same assets, or some of it, can be placed in a trust account where you will be the trustee. This gives you full control of who gains access to your assets both while you are still alive and when you are already dead. How? In your trust, you will be identifying the beneficiaries of your assets. For example, if you become disabled because of injury or even a debilitating disease, your beneficiary can administer or manage your trust without the need for a court. Additionally, should you eventually die, there is no need for a court to perform the probate proceedings, saving your family the hassles of court proceedings as well as the taxes that will have to be paid.
It is for this reason that more and more people are getting into the planning of their trusts rather than their wills. Unfortunately, there are some drawbacks to trust administration. It is generally more expensive setting up a trust simply because it needs to be actively managed and funded. Additionally, if you failed to fund your trust or transfer it to your beneficiary before you die, you will still be subject to estate taxes, not to mention subjecting your estate to the probate process.
Leave your family a peace of mind. Call a lawyer that specializes in estates and trusts, like those at the Coleman Law Firm.
To know more about your best options, contact the Coleman Law Firm today at 727-461-7474 or contact the firm online to schedule a free initial consultation.
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Company Name: Coleman Law Firm
Contact Person: Jeff Coleman
Email: receptionist@colemanlaw.com
Phone: 866.461.7474
Address:581 S Duncan Ave.
City: Clearwater
State: Florida
Country: United States
Website: www.colemanlaw.com