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Wills And Trusts

Posted on April 4th, 2022

In the modern financial world, people are becoming increasingly concerned with protecting their assets. This makes a great deal of sense, given the potential for rising taxes and other issues that may draw down portfolio savings over a period of years. One of the best ways to make sure your assets are passed down to your desired heirs is to use a will or trust. The use of these vehicles can also eliminate or greatly reduce the potential tax burdens on assets being passed down to heirs and might even make the entire process much simpler and faster.

What Is A Will?

A will is defined by Investopedia as “A legal document that sets forth your wishes regarding the distribution of your property and the care of any minor children.” Such a document can be extremely important for several reasons. Needless to say, if someone passes away and has minor children, those children will need to be taken care of. This includes but is by no means limited to having a place to live, having food, clothing, and other necessities required to carry on a normal lifestyle. Although minor children are likely not in the least concerned about the distribution of property, it is this distribution that may provide the funds necessary for the children to have what they need.

Having a last will and testament can make the settling of someone’s affairs quite simple upon their passing. The lack of a will, however, can lead to much greater cost, energy, and time involved in the settling of affairs.

What Is A Trust?

A trust is defined by Investopedia as “A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.”

A trust may be established for a variety of reasons. These may include the desire to limit or eliminate inheritance or estate taxes, to legally protect assets, or to make sure the property is distributed according to the trustor’s desires. Whatever the case may be, setting up a trust can make the process smoother and cleaner and can allow for the expedient transfer of assets.

When Should A Will Or Trust Be Considered?

 The use of a will or trust can depend on several factors. To determine if a will or trust is the appropriate vehicle to use, one will need to know their objectives, what they are trying to protect the assets from, and their tax situation. The use of wills and trusts, while not always, can become highly complicated if the assets are numerous or complicated. This can make it prudent and likely necessary to speak with an expert in wills and trusts.

An expert can not only explain the differences to you in detail but may also be able to discuss with you the pros and cons of each depending on your circumstances. A financial estate planner, such as Daily Mills Estate Planning, is the type of company that can help.

If you have acquired significant assets that you want to protect and leave for your heirs, now may be the ideal time to speak with a professional. Call our Mooresville wills and trusts attorneys or visit us online at Daily Mills Estate Planning to have your questions answered and to learn more about how to protect your assets today.