Remember when they said nothing is certain in this life? Well! They forget to tell you that “life itself is uncertain”; no one has promised time on this planet. Especially when you are the sole provider for your family, the next question would be what will happen to your family. It is best not to worry about this uncertain part of life. Therefore, you need Will and Trust.
Well! not everyone likes to plan for the future but if you are clever enough, you should. You need to be prepared for yourself and your kids, especially if you are an immigrant. You need to have a legally written will for a prepared future. A will is a legal binding process that has your instructions and wishes of what you would want to happen with your assets after you pass away.
Without a trust or will, you will leave it on people or the government to decide what would happen with your entire life’s hard work (money and properties). It will legitimately cause trouble to your kids and reasons to argue with each other.
If you don’t know what trust and will means? let’s get you into the insights:
What are will and trust?
Wills and Trust are both an estate planning process that can help asset holders to ensure that their property and finance are guarded and bestowed to their heirs, besides the spouse as it, not an issue.
The procedure of money transfer becomes more crucial when wealth is passed to the next generation. It is legally possible to have both trust and will.
A will is a hand-written document that contains wishes and instructions of the assets holding person. It will contain names of cash assets to charities, relatives, or friends, bestowing objects and cash to the next generation and to their next generation also. A will becomes legal and active after one passes away.
Trust is active and legal since the day you have created it and a grantor will sort the list of assets before the death of the asset holder, unlike a will. There are binding trusts, most commonly generated for tax purposes that can’t be changed and living trusts that can be changed by the grantor.
It is essential that a will should go through all legal procedures known as probate (a legal court examinator will examine them). This procedure can be possibly contentious and lengthy if any family member changes the will.
Whereas trusts are not obligatory to go through certification when the grantor passes away, they can’t be changed.
Things to note about Wills and Trusts:
1. Whether you opt to have a trust or will, you must seek the help of legal professional advisors (investment, or tax).
2. A will is a binding process that spells how asset holders want their assets and affairs handled after they die.
3. A trust is a relationship in which a trustee gets the right to hold assets and property by the trustor for the benefit of a third party.
4. Trusts provide more regulation on assets and property, but they need to manage actively, hard to set up and more expensive comparatively.
These are some essential points about will and trust that you need to understand. Now, let’s get deep insights into both one by one: