What Is The Difference Between A Will and a Living Trust?

When you are trying to determine which estate planning documents will work best for your situation, it can be challenging to choose among the variety of options. However, many people at least opt to put together a will document and some may also do a living trust Phoenix, AZ. But it can be confusing to determine if this is the same type of document and what the difference may be between the two. What is the difference between a will and a living trust and how do you determine which option is going to work best for your situation?

To start, both are used to distribute your estate upon your passing. The will document, however, is more of a guideline to your overall wishes and desires for your estate upon your passing. By comparison, a living trust Phoenix, AZ deals with your major assets, namely your real estate property. You can re-title this property under the trust document so that you can administer it while you are living and it can go to a specific beneficiary upon your passing. The main difference between these two documents is that the trust document allows you to avoid probate for your property upon your passing. A will document means that your entire estate must pass through probate, which can be both costly and time-consuming. In fact, some estates, depending on the size and elements of it, can get hung up in probate for years, dragging things out for the heirs of the estate.

Both have advantages and disadvantages. For instance, a living trust is not subject to probate and avoids the possibility of court supervision of your estate throughout the administration of it. Moreover, the process remains private, so your living trust Phoenix, AZ is not subject to public recording. By comparison, a will document becomes a matter of public record upon your death, which means just about anyone can view it.

Moreover, upon your passing, you can choose the person that you are allowing to manage your living trust Phoenix, AZ, allowing them to become trustee in your place. By comparison, when it comes to a will, you must either grant a power of attorney or utilize the conservatorship process in order to have your estate administered.

However, a living trust Phoenix, AZ is more expensive than a traditional will and costs more to fund and manage than other types of estate planning products. This is something to consider if there are budgetary concerns associated with your estate planning process. In the long run, however, if hands-on management and oversight of your estate is important to you, then this might be your best option for an estate planning product. If you aren’t sure of how to navigate the process of setting it up and properly funding it, consult with a qualified attorney that specializes in setting up a living trust Phoenix, AZ so that you know everything is done properly and above board.

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If you are not sure as to what legal document you currently have contact one of our professionals to help you with your estate planning. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.