11/18/21, 3:09 PM
The Differences Between a Trust and a Will | Sylvester Knox | Professional Overview
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The Differences Between a Trust and a Will by Sylvester Knox | Nov 18, 2021 | Personal Finance, Retirement
Wills and trusts can help minimize the burden of transferring assets to heirs after your death. They can also help minimize the tax liability that comes with it. When wealth is passed down to a subsequent generation, it becomes more involved.
What Are Wills? A will is a document that states a person’s wishes regarding their financial affairs, such as how they would like their assets to be distributed. A trust is also a type of will that is active immediately after one’s death. Probate is a legal process that involves examining a person’s will. It can be lengthy and can be contested if family members contest it. A testamentary will is a type of will that states how you want your assets to be distributed after passing away. Although wills can be effective in transferring assets after death, there are some disadvantages to it. For instance, having a will means it will be on your estate’s records and can be subject to probate court.
What Are Trusts? Trusts are another method of transferring assets. It gives a third party authority to manage your assets. Trusts can be created for various purposes. There are two main types of trusts, https://sylvesterknox.net/the-differences-between-a-trust-and-a-will/
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