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Trust and wills are both estate planning tools and both of them will help you to keep your assets protected and bequeathed to your heirs, besides your spouse and that isnu2019t a general thing to concern. In fact, that is because the unlimited marital deduction provision with the United States Estate and Gift Tax Law allows the passing of wealth to a surviving spouse without incurring gift or estate tax liabilities. Considering words by Chris Stidham, this article is all about Wills and Trust that you should know if you are considering taking any of the services.
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Chris Stidham — Everything You Need To Know About Will And Trust
Trust and wills are both estate planning tools and both of them will help you to keep your assets protected and bequeathed to your heirs, besides your spouse and that isn’t a general thing to concern. In fact, that is because the unlimited marital deduction provision with the United States Estate and Gift Tax Law allows the passing of wealth to a surviving spouse without incurring gift or estate tax liabilities. Considering words by Chris Stidham, this article is all about Wills and Trust that you should know if you are considering taking any of the services.
HERE ARE THE BASIC DIFFERENCES BETWEEN WILL AND TRUST: 1. The trust deed will be executed whereas the Will itself is a document that has all the details. 2. If you are talking about will, then a declaration with regards to the management as well as the distribution of the testator’s assets right after his or her demise is officially termed as Will. And on the other hand, Trust is that legal arrangement in which the settlor authorizes a person as trustee to hold the asset for the sake of the beneficiary.
3. A Will is basically a public document once the testator passes away. And on the other hand, trust is nothing but a private document. 4. A will can be revoked any time before the demise of the testator. In contrast to trust, in which revocation depends on the type of trust, i.e. in the case of a revocable trust, it can be revoked anytime during the lifetime of the author while an irrevocable trust cannot be revoked after it comes into effect.
5. A will only become effective once the testator passes away. And then if you talk about trust, it will come to effect right when the asset is transferred to the trustee. 6. Only a certain asset that is stated in the trust document or deed will be transferred in trust. Whereas, all the assets of the testator’s estate are covered under the will.
7. A will undergo probate i.e. a process in which the court checks the validity and looks after the administration of the will. As opposed to trust, which does not undergo through probate.
THE TRUST MAY CONTAIN THE FOLLOWING FACTS: • Compensation of Trustee • Objective of trust • Rights as well as limitations of trustee • If you are having several beneficiaries, the proportion in which the assets is transferred to each beneficiary. • Assets covered
The final thing that Chris Stidham attorney would like to tell you is that Trust and Will both are pretty much effective tools if you consider estate planning. Yes! If you want to manage the transfer of assets, then both of them can be a great thing to consider.
It will allow you to nominate a person who will look after all the transfer of the assets to your loved ones or whom you choose. As will goes through probate, the transfer of asset takes more time than in the case of a trust. SOURCE CREDIT : https://medium.com/@chrisstidhamattorney/chris-stidham-everything-you-need-to-know-about-will-and-trust-11448eb53e60
