What Are the Differences between Wills and Trusts?
A will is the traditional way for people to direct who will receive their assets after death. Through a skillfully drafted will, your attorney can minimize any taxes and other costs that may be payable at your death. Your will can also name an executor (personal representative) of your own choice to carry out the directions in your will and help your family with any of the special problems (business or personal) that may arise after your death.
A carefully prepared will can also include a trust that provides practical security for beneficiaries who may not be qualified to manage and budget their inheritance. Trusts are arrangements in which assets are titled in the name of a trustee, who manages the trust assets and pays income to individuals named by you. Your beneficiaries will have all the rewards and advantages of property ownership, but with none of its burdens and frustrations.
The revocable living trust can be an effective estate planning tool for many people, providing privacy for one’s estate, financial management in times of disability, distribution of assets at death and reduced probate costs. Ownership of your assets will be changed over to the trust, but you would keep the right to change or revoke the trust during your lifetime.
Your will or revocable living trust may also be the best way for you to arrange to make a thoughtful bequest to provide for our future. In a well-planned will, the cost of such a bequest can be surprisingly modest. Please call our office for more information about wills and estate planning and the simplicity of including us in your plans.
Director of Institutional Advancement
The materials contained on this website are intended only to show some ways by which you can make a charitable gift or bequest and thereby minimize federal tax liabilities, as authorized by the Internal Revenue Code. All examples are of a general nature only and should not be applied to your specific situation without first consulting your attorney or other advisers.