Estate planning does not only help us with asset protection, but it will also let us decide what should happen to our assets when we die. To have a clearer view, let us first define each estate plan.

Let’s start with a Will. Will estate planning is the less expensive and less time consuming method in estate planning. In this estate plan, the person creating the Will must determine who will be the executor. An executor is the person who will manage your Will once you die. He will also be the one to distribute the properties to your selected beneficiaries. A Will only takes effect upon the grantor’s death.  When the grantor’s death arrives, the Will is taken to court and must undergo a process called a probate. This process could last from months to years depending on the assets that you have or if there are any conflicts with your Will. The court will also impose taxes to your properties depending on their values. Since this will undergo a probate process under the court, it is considered a public case which means there is no privacy about your will.

A living trust is expensive than a Will. A living trust does not need to undergo a probate process for it to take effect. It also provides the grantor more opportunities or control over his assets. A living trust will also take effect even if the grantor is only incapacitated and not yet dead. When a grantor is incapacitated, a trustee successor will take his place and help him in carrying out the trust. Since the court will only oversee the distribution of the assets and will not implement a probate process, the privacy of your assets will be disclosed from the public. A well drafted trust will definitely result in a way that you most likely would want, and sometimes taxation could also be avoided.

The only similarity of a Will and a living trust is that they both have the same goal which is allowing you to decide where your properties should go and how they should be distributed and handled. The difference is that a Will needs to undergo a probate, while a living trust does not. A will is less expensive and less time consuming than of a living trust. A disadvantage of having a Will is that you have limited control over asset protection from your creditors also with regard to taxes. An advantage of a competently written living trust is the opposite.

If you are still confused as to what kind of estate plan should you have, it is advisable that if your estate is worth less than $100,000 you should take a will in order for you to save up more money. However, if you decide to have a living trust, it is essential that the living trust is well funded.