Discussing the distinctions between a Will-based plan and a Trust-based plan so you can make an educated decision for your family about what is finest for you and, ultimately, for them.
A Will-based plan is an estate plan that does not include a Living Trust to hold title to your properties. If you work with us and select our Family Plan, which is a will-based plan, your legal files will include a Healthcare Regulation, Power of Attorney, a Will and, if you have minor children, a Legal Guardian Prepare For Children.
A Trust-based plan is an estate plan that does consist of a Living Trust to hold title to your possessions during your life time and to offer ease of transfer of those possessions in the occasion of your incapacity or death. If you work with us and pick our Trust Plan or Wealth Plan, your legal documents will include all of the files consisted of in the Family Plan PLUS several Living Trusts.
So, what’s the practical difference?
The difference in between a Will-based plan and a Trust-based plan is that without a Rely on location your family would have to go to Court to get access to your properties in the occasion of your incapacity or death.
Your Will shows who you want to have access to those properties and how you want them distributed, however it does not keep your family out of the Court process. Going through probate (or guardianship in case of inability) is expensive, lengthy, completely public and unnecessary. And that’s what happens when you have only a Will in place and not a Trust.
When you have a Trust in place, there is a bit more work for you to do in advance since you need to make sure that all of your assets are owned in the Trust throughout your lifetime (or insurance coverage properties are recipient designated to the Trust).