Trusts vs. Wills: Choosing the Right Estate Planning Tool
Secure Your Legacy and Protect Your Loved Ones
• Trusts and wills are vital tools for asset protection and distribution.
• Each offers unique advantages based on individual needs and goals.
• Regular updates are essential to reflect life changes.
• A lawyer can provide guidance to select the best option for your estate planning.
Learn more here: https://cohenlaw.ca/trusts/
What Is Estate Planning?
• Estate planning involves creating legal documents that specify how your assets will be managed and distributed after your passing.
• Primary tools include wills and trusts, each with unique advantages.
Why
It Matters?
• Helps secure your family’s future, reduce legal complications, and manage estate taxes.
What Is a Will?
• A will is a legal document specifying how assets are distributed upon death.
• It can also name guardians for minor children.
Key Features of a Will:
Simplicity: Straightforward to create.
Probate Process: Must go through court validation (probate).
What Is a Trust?
• A trust is a legal arrangement where assets are held by a trustee for beneficiaries.
• Trusts can be set up to manage assets both during your lifetime and after your death.
Key Features of a Trust:
Privacy: Avoids probate, keeping estate details private.
Flexibility: Can specify conditions for asset distribution.
Key Differences Between Wills and Trusts
Ownership & Control
● Will: Assets remain in your name until death.
● Trust: Assets are transferred to the trust and managed by a trustee.
Probate Requirement
● Will: Subject to probate, which can be time-consuming.
● Trust: Generally avoids probate, enabling faster distribution.
Privacy
● Will: Becomes public through probate.
● Trust: Remains private.
Key Updates to Make in Your Will or Trust
When to Update Your Estate Plan
● Life Changes: Marriage, divorce, births, deaths.
● Financial Changes: Significant changes in assets or liabilities.
● Legal Changes: New estate laws or tax implications.
Importance of Regular Reviews
● Review every 3-5 years to ensure your wishes are accurately reflected.
• Wills - https://cohenlaw.ca/wills/
• Power of Attorney- https://cohenlaw.ca/power-of-attorney/
• Estates and Probate - https://cohenlaw.ca/probate/
• Trusts - https://cohenlaw.ca/trusts/
https://cohenlaw.ca/
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