While many people tend to avoid it until the last minute, when someone close passes, or they find themselves close to the end, estate planning is crucial in ensuring the well-being of your loved ones. This could mean setting up a trust or a will. The two each have their benefits, but it is important to note the differences.
A will determines who will be in charge of your estate, as well as who will receive the estate upon your passing. It is important to set this up to prevent fighting or legal action from family and loved ones over who should gain claim to your estate.
A trust comes in many forms, the most common form of a trust that is handled with estate planning is called a revocable living trust. With this in place, your assets can be distributed to your trust beneficiaries without a court proceeding, greatly expediting the process.
With a trust, you can cover specific parts of your portfolio. This means you can choose to withhold certain funds, keeping them under your own jurisdiction. A will covers your entire estate, but you can split the assets between people.
For additional information about estate planning, please review the attached video..