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Wills Vs. Trusts

Video Text

MJ: Hey guys welcome to our next video, and today’s topic we are going to be discussing Wills vs. Trusts. So, Nicole I know that this is your specialty so let’s get it started. What is the different between a Will and a Trust? 

Nicole: A Will is a document where you are able to devise your real property, money and personal property to your loved ones or anyone you care about after your death. It only takes affect on your death, it does not cover anything during life. A Will also only covers things that are solely owned by the person making the Will.  

MJ: So, an individual? 

Nicole: An individual making the Will, it’s only covering as if it’s a loan not a joint account with their wife or mother or father and not an asset that has a beneficiary designated like a life insurance policy or retirement account. A Will is a public document. On the death of the person who made the Will, their Will, will be probated and that is now public record once it’s filed with the court. A trust on the other hand is a private document and once signed and funded it’s effective immediately, during life.  If the granter of the trust becomes incapacitated, they are able to stop being their own trustee and have a third-party trustee come in and handle their affairs for them. Where a Will transfers your assets at death and trust can be used during your life to provide for you and your family while you are still living. A trust is a private document like I mentioned, once, or if, it gets filed with the court, it gets filed in a separate binder in the back of the file and is not for public consumption. The real value with the trust is that you have complete control both while you are alive and after you are dead. 

MJ: I know you touched on it, but what is the importance in having these documents and a proper estate plan? 

Nicole: It is critical to have these documents and an estate plan, without these documents the state has a plan for you and you may not like the way the state wants your assets to pass. With a blended family it is extremely important to have an estate plan. 

MJ: Wait, hold on. What is a blended family for those that might not know? 

Nicole: A family that might be a second marriage with kids from the first marriage, where each part of the couple is bringing children into the marriage. Things can get a little bit more complicated, so a really well drafted estate plan is important for people with blended families. It’s important for everyone, but especially in that situation. Another really important aspect would be asset protection, with a property drafted and funded trust, you can protect those assets from creditors, bankruptcy judgements, divorce, a lot of the “bad guys” that can come after your funds.  

MJ: All very important stuff.  

Nicole: Like I said, Trusts are a very complex facet of estate planning. There are many different types that do different things, so it is best to have a professional to go through that with you and discuss for each situation.  

MJ: Very important, and I know a great professional that might be able to help you out, if you have any questions or concerns about your estate plan. 

Nicole: The other huge thing about Trusts and Wills, is that if you have a plan as to how your assets are to be distributed after your death it will vastly expedite the probate process and that will save your family and estate thousands in dollars and a lot of aggravation in family feuding.  

MJ: So, Nicole I just had a little life event recently. What do you think would be the best option for me, or for anyone who’s looking to get a will or a trust?  

Nicole: Honestly, every family, every individual situation is different. The best way is to come in and talk to a professional about their situation, about their hopes and dreams for the future and things that they need to protect in the future, and we will craft a custom plan for each family, each situation. 

MJ: Excellent. So, if you guys have any other questions in regards to your estate plan, for your wills or trust, our contact information is going to be at the end of this video or you can leave a comment in the comment section below.