Will vs Living Trust
Will and Living trust are two terms that have to be understood very carefully when it comes to their connotations and concepts.
Will and Living trust are both concerned with estate planning or property planning. In fact they both aim at the division of the estate or property upon death of an individual. Will is generally drawn up with the sole purpose of establishing how an estate will be divided upon death.
It is quite common to see that beneficiaries and executors named by the individuals in the creation of will. These beneficiaries will distribute assets for major heirs and the guardians for minor children.
Living trust on the other hand states how assets should be divided at death. In the case of a living trust the individual names a successor to the trust. It is important to know that the successor to the trust has all the power the executor has over it.
One of the main differences between will and living trust is that living trust allows the depositing of assets into the trust even while a person is living. Another important difference between the two is that the court is usually involved in the distribution of property in the case of a will.
On the other hand the court is not involved in the distribution of property in the case of living trust since the individual names the trustee as the holder of the estate or the property. Will and living trust differ from each other in terms of probate too.
It is believed that the probate involved in the creation of living trust is short when compared to the probate involved in the creation of a will. This is the reason why most people opt to create a living trust to avoid the long probate connected with will.
There is difference between will and living trust when it comes to the costs involved in their creation as well. It is said that wills are generally not very expensive in creation when compared to living trusts.
The costs in the creation of living trusts are continual in the sense that you have to pay the fees for the creation and for the upkeep as well. This is probably the reason why living trusts are not recommended when dealing with the property related to small estates. Small estate owners simply settle for will instead of living trust.