Wills and trusts are both ubiquitous terms in the realm of end-of-life planning. Ensuring that an older loved one has their wishes carried out after they pass away is a great thing that you can do for their peace of mind in their later years. However, many people are unsure of the difference between a will and a trust.
Here are some of the key differences between a will and a trust in Texas.
One of the main differences between a will and a trust is when the document goes into effect. For example, a will is only executed once someone passes away, while a trust can go into effect before the grantor dies. A trust might be ideal in cases where there is strife within a family and the grantor wants to ensure that their funds and property go to the people whom they wish. Adults can draft both a will and a trust before they pass, but only a trust can go into effect prior to death.
Trusts and wills, while similar, offer some different things. For example, a will allows parents to name a legal guardian for their child in case they pass away while the child is still a minor. On the other hand, a trust offers advantages such as the ability to bypass probate court and utilize certain privacy controls.
Wills and trusts accomplish similar tasks, but doing research to learn their differences enables you to decide which one is best for you.