Below, we explain the difference between a Trust-based plan and a Will-based plan. This will help you make an educated decision for you and your family and you will know what is best for them.
A Will-based plan does not include a Trust. In a Will-based estate plan, your assets will be held in your own name. With Truest Law, our Family Plan, which is a Will-based plan, your documents will include a Health Care Directive, Financial Power of Attorney, a Will and if you have minor children, a Kid’s Protection Plan.
A Trust-based plan includes a Trust which will hold title to your assets. This allows ease of transfer at your incapacity or death and will hold assets during your lifetime. With Truest Law, our Trust Plan or our Wealth plan includes the documents included in our Family Plan PLUS one or more Trusts.
So, what is the practical difference?
In the event of your incapacity or death, your family may have to go to court to gain access to your assets if you do not have a Trust plan.
Your Will tells the court WHOM you want to have your assets and HOW to distribute your assets, but it does NOT keep your family out of court – no one wants to be in court at the time of your death or incapacity! Court is expensive, time-consuming, totally public and absolutely unnecessary. That is exactly what can happen if you only have a Will in place and not a trust.
Your family will have a much smoother and less costly procedure if you have a Trust in place. You have to do a bit more work up front. For example, you must make sure that all of your assets are owned by your Trust. They need to stay there throughout your lifetime. You need to make sure that your insurance is properly designated. Truest Law can help you with trust funding or even do it for you.
We have a regular review process to make sure your assets are owned the right way throughout your lifetime. We want to make certain that your plan stays up to date as your life and family grows and changes and even when the law changes.
During our Family Wealth Planning Session at Truest Law, we will discuss whether a Will-based Plan or a Trust-based plan is best for you. You will make this decision based on the specifics of your family, what you own and what your future plans are. We will help you make this decision as your family and assets grow. One thing you can be sure of is that we will help you make the right decisions every step of the way!
Interested? Visit our website at TruestLaw.com or call us at 480-949-6500 and we will get started.