Will vs Revocable Trust: Why Seniors Need Them

Estate planning can be confusing, with various legal arrangements to consider, including the issue of will vs revocable trust. Both can be instruments for estate planning, but not everyone needs a trust and a will.

This post will cover why seniors may need wills or revocable trusts and the key differences.

Will vs Revocable Trust: What You Need to Know

The first point to consider is why people might need a revocable trust or a will. Both are tools to ensure control over the distribution of assets upon passing and prevent disputes among potential heirs.

Both have similar purposes but differ in significant ways. Let’s explore some of the ways wills and revocable trusts differ.

The Basic Difference

Wills and trusts have similar purposes in estate planning but significant legal differences. A will is a document that outlines the individual’s wishes for what happens to their assets when they die, while a trust is a legal entity. The trust holds and manages assets for the individual, and it follows instructions for distribution and management.

When They Take Effect

This is a key difference. A will goes into effect once the individual dies. However, trusts go into effect as soon as they’re created and funded.

Flexibility

Wills are simple documents that give instructions. The powers of what you can achieve with a will are limited. Revocable trusts offer more flexibility. You can also use your trust to manage assets while you are alive.

Probate Process

You can use a will to specify your wishes, but it must still go through probate, which is a legal process that distributes the assets and is time-consuming. Probate also offers people an opportunity to contest your will. Since probate is court-supervised, it means the process is public.

A revocable trust can help you prevent the estate from going to probate. Avoiding probate simplifies the process, making it faster for your heirs. It also limits the potential for someone to contest your wishes. Keeping the estate out of probate also helps ensure privacy.

Incapacity

Wills only take effect once the individual dies, so they are not suitable for incapacity planning. A revocable trust can have instructions in the event of incapacity. However, you could create a power of attorney to take effect in the event of your incapacitation.

Costs

Costs vary depending on several factors. Drafting a will costs less than creating a trust, but the probate process could cost more upon death.

That’s why seniors should consult an estate planning attorney. A will is the right choice for some, and a revocable trust is right for others. In some cases, you might benefit from having both.

Safety and Overall Well-Being at Dream Catcher

If you need a senior care center in Georgia, check out Dream Catcher. We offer seniors the services and amenities to live a healthy and fulfilling life.

Get in touch with our team, and we’ll be happy to answer your questions.

Thanks for visiting!