Trusts or Wills?
You have spent decades of your life building a community, a family, an estate and so much more around you and those you love. You have invested time, energy and money into building a life that you are proud of and it’s difficult to think of a time when you won’t be there to see it all continue on, but taking the necessary steps to ensure a smooth transition after your passing is crucial to ensuring a smooth transition of your estate to those you’d like to oversee its future.
About Trusts
When assets are held in a trust, there is now the ability to give a third-party (trustee) the ability to directly manage those assets on behalf of those in ownership of the trust (beneficiary or beneficiaries). [1]
Through the trust, you decide where your assets are held and when they become accessible to your beneficiaries. Accompanying the trust with a detailed will can also help minimize potential tax and court fees that your beneficiaries may otherwise incur. Trusts can protect from outside creditors, loss from divorce settlements and canassist with directing where remaining investments are to go in the case of a beneficiary’s passing. [2]
Trusts allow for assets to be passed quickly and with little outside interference, allowing for privacy and the avoidance of the probate court process associated with wills.
About Wills
Wills are legal documents that turn your last requests regarding your material assets into a legally enforceable statement in the event of your passing. Wills often include instructions regarding what is to be done with certain possessions, investment accounts, properties and who, if anyone, will receive them. Wills typically must be signed in the presence of a witness. [3]
Depending on the estate, solely using a will can open the door for a lengthy and brutal probate court process. [4] If an estate goes to probate court, a judge will make the final decisions regarding how your estate is inherited. This process can take months to years and can easily become public.
Minimizing Taxes Through Wills and Trusts
Wills and Trusts don’t have to be a “one or the other” thing. You can utilize both important parts of legacy planning to your advantage to ensure your estate is passed on as you would like and that you and your beneficiaries avoid unnecessary tax burdens.
Working with the advisors at Moore’s Wealth Management is the next step to integrating an effective tax-minimization strategy into your retirement and legacy planning. To schedule a complimentary financial review with Moore’s Wealth Management, click here or call our office at 770-535-5000, where a staff-member is awaiting your call Monday through Friday, 9AM to 5PM.
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
Advisory Services Network, LLC does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state laws are complex and constantly changing. You should always consult your own legal or tax professional for information concerning your individual situation.
