How Does a Living Trust Differ from a Will?

Creating a comprehensive estate plan means never letting a stone go unturned. This is to say that you often have to decide between differing estate planning document types and ultimately establish one that will be the most effective for you and your desired beneficiaries. A common struggle that many individuals experience is choosing whether they should become the settlor of a living trust or a testator of a will. Read on to discover how a living trust may differ from a will and how one of the seasoned Butler County trust attorneys at Heritage Elder Law & Estate Planning, LLC can help determine which document works best in your plan.

What is a living trust?

First of all, there is a distinction between a revocable living trust and an irrevocable living trust. On the one hand, a revocable living trust may allow you to control and access the assets you transfer over while you are alive. On the other hand, an irrevocable living trust requires you to transfer your ownership rights over to the trust at the time you transfer your assets over.

Nonetheless, there are key advantages to both. For example, a revocable living trust gives you the option to easily amend its terms and conditions. This may allow you to avoid legal issues or court interference at all costs. Then, an irrevocable living trust gives you undeniable asset protection. This may allow you to minimize your estate taxes and bar collection activities by creditors, among other money matters.

In what ways does a living trust differ from a will?

Besides a revocable or irrevocable living trust, there is the option of a will. Essentially, a will is an estate planning document that allows you to name who gets which of your assets (i.e., your desired beneficiaries) when you sadly pass on. In turn, it allows you to name who gets to control and distribute these assets on your behalf (i.e., your desired executor).

With all this being said, the main distinction between a living trust and a will is that a will has to go through probate. This is a legal process in which a Pennsylvania court validates your disclosed assets, executor, and beneficiaries before administration can take place. In other words, it entails government involvement on a public scale.

While this may make it seem like a living trust is preferable over a will, there may be valid reasons why you think the opposite. That is, you may favor a will if you have a smaller estate and wish for a more time-effective and cost-effective estate planning process.

But if you have any further questions or concerns on the matter, please do not hesitate to reach out to one of the competent Butler County estate planning & probate attorneys. Schedule your initial consultation with Heritage Elder Law & Estate Planning, LLC today.