Wills vs Trusts: Key differences

Hello guys,?

Who missed me? Lol…?

Today’s topic is not something that is talked about much, in fact, most young professionals don’t even care or know about this. But I care about you, and that’s why today I’ll be sharing the key differences between both.?

Now before you scroll over, age nor financial status have nothing to do with this. Having a Will or Trust is as important now as it will be when you’re old. So why not educate yourself ahead of time???

Without further ado, let’s dive right into it:

Differences between Wills and Trusts

Let’s say you’re making plans for the distribution of your assets and how to protect your loved ones, two things come into consideration-Wills and Trusts

While both serve similar purposes, they operate in distinct ways and offer unique advantages depending on individual circumstances.

A Will is a legal document that outlines how your assets and property should be distributed if life happens. It allows you, referred to as the testator, to assign your beneficiaries to specific assets, appoint guardians for minor children, and name an executor to oversee the administration of your estate.?

Wills typically go through the probate process, during which the court validates the document and ensures its instructions are carried out.

On the other hand, a Trust is a legal arrangement in which assets are held by a trustee on behalf of beneficiaries under certain conditions.?

The person who creates the Trust, known as the grantor or settlor, transfers ownership of assets into the trust, which is then managed according to the terms outlined in the Trust document.

Let me break it down, let’s say you assign Leadway Capital and Trusts to manage this process for you. Leadway Capital and Trusts would hold those assets and manage them according to what you penned down in the agreement until conditions are met for the proper transfer to your beneficiary.

Trusts can be revocable or irrevocable, meaning the grantor may retain control and modify the trust during their lifetime with a revocable trust.? Whereas, an irrevocable Trust generally cannot be altered once established.?

Unlike Wills, Trusts typically avoid probate, offering privacy, efficiency, and potentially reduced costs in estate administration.

To help you make the right decision, consulting with legal and financial professionals is essential. My guys at Leadway Capital and Trusts can handle this for you.?

Because, whether you’re going for a Will, a Trust, or a combination of both, you need to plan accordingly so your wishes are carried out effectively.

And that’s a wrap! Now, it's your turn to be the judge. Can't decide which option to choose? Don't worry, I've got your back! Just drop your contact details on our DM here and my colleagues from Leadway Capital and Trusts will reach out to you.

Alright, friend, see you next week.

Cheers!

Caleb from Leadway.