Wills and trusts are both legal documents utilized in estate planning, but they serve different purposes and have distinct characteristics.
A will is a legal document that outlines how a person’s assets and property should be distributed after their death. It also allows individuals to designate a personal representative to handle their affairs post death, guardians for minor children and express their final wishes. Wills are highly recommended for anyone over the age of 18 who have the capacity to execute a Will.
A trust is a legal arrangement where a person (the settlor) transfers their assets to a trustee to hold and manage for the benefit of one or more beneficiaries either during life or following their death. Trusts can serve various purposes, including asset protection, tax planning, and avoiding probate. Trusts are often more complex than a Will and not recommended for everyone, but can be a valuable estate planning tool in certain situations in addition to a Will.
If you have any questions about the topic discussed in this article, or any tax or estate law matter, please give us a call at Bononi & Company 724-832-2499.