Estate planning is an important part of wealth management. After all, it’s important to make sure that you have plans for how your assets are to be distributed once you are no longer able to manage them. When it comes to estate planning, you’ll want to make sure you look into establishing a will, trust, or both. Although they have some things in common, wills and trusts have a few key differences that are important to take note of.
For one, wills deal with matters that need to be taken care of after you’ve passed away. Your assets will be distributed to your beneficiaries accordingly. Unlike wills, trusts can be utilized while you’re still alive, so you can transfer an asset to a trustee before you’ve passed. There are many different types of trusts to note, such as special needs trusts, charitable trusts, and more. When looking at how you want your assets distributed, it’s important to look at both wills and trusts before deciding which type of document is most appropriate for your needs.
Wills also deal with considerations outside of your assets. For example, unlike a trust, your will should make a note of who is to take guardianship of your children if you pass away before they reach adulthood. Details such as accommodations and wishes for post-death considerations are handled in a will rather than a trust.
If you need help setting up wills and trusts for your estate planning needs, we here at Johnson DuRant, LLC, are happy to help, so give us a call today.