WHEN A REVOCABLE TRUST MAY BE BETTER THAN A WILL
Dec. 6, 2018
In many situations it is better for people in Missouri to have a plan for big events. It is good to know when certain things are going to happen at the event, what type of seating will be needed, what type of food may be served and many other aspects of events. This is also true for people as they raise children, progress through a career and many other aspects of life. It is also true for people as they prepare for death as well. Estate planning is important to ensure that people’s property goes to the people they want it to.
There are different options available for people as they go through the estate planning process. Two of the more popular options are to draft a will or to create a revocable trust. Many people may have heard these terms, but may not know exactly what each one does for them and when one is preferable over the other. The biggest difference between a will and a trust is that with a will the person retains ownership over their property, while with a trust the trust actually obtains ownership over the property transferred to it.
So, trusts may be preferable in situations when people have minor children. Putting the trust as the beneficiary for life insurance policies or retirement accounts can ensure that a trustee will manage the money for the children in the manner that the parents wish it to be handled. Trusts can also be beneficial when people have estates that may be subject to estate taxes. By putting parts of the estate in a trust people can avoid having to pay an estate tax. Another benefit is that trusts remain private while wills would have to go through a public probate process.
Everyone in Missouri has a different living standard and type of life depending on how old they are, how many children they have, what types of assets they own and many other aspects. However, one thing is true for everyone and that is that people cannot take their possessions with them when they pass away. That is why estate planning is important. Experienced attorneys understand the different options available to people and may be able to guide one through the estate planning process.