wills vs. living trusts?
I have put off creating a will for too long. I was wondering if someone
could list the difference between a will and a living trust.
A will specifies what you wish done with your estate. It lets you
nominate an executor, lets you state who you wish to be the guardian
of your children and who you wish to be the custodian of your
children's funds. It lets you state you wish the executor to post
no bond; ditto for the guardian and custodian of your children.
Everyone who has any property of any kind --including property of
which you are not aware -- really should have a will. If you have
children you must have a will to state who will care for them.
Some of your property will be part of your estate for probate, which
means the court will get in on the action. Some won't.
For example, you could put property in joint custody with rights of
survivorship and that property automatically goes to the joint
partner upon your death. But what if the joint partner also dies?
Property in a trust -- either a trust created before your death,
such as a living will, or a trust created through specifications in
your will itself -- can hold some of your property.
Many people create a living will to keep those assets out of probate
and to save on estate taxes. There are many books out about living
trusts.
But -- very important - a living trust is NOT a substitute for a
will. Even if you decide to have a living trust, also have a will.
The will and the trust instrument should be coordinated with each
other.