[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/does-your-estate-plan-need-a-will-or-a-trustor-both-white-plains-ny-greenwich-ct\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/does-your-estate-plan-need-a-will-or-a-trustor-both-white-plains-ny-greenwich-ct\/","headline":"Does Your Estate Plan Need a Will or a Trust\u2014Or Both?","name":"Does Your Estate Plan Need a Will or a Trust\u2014Or Both?","description":"\u201cOne of the most fundamental choices you can make as you\u2019re thinking about how to pass your assets on to heirs, is whether you hold assets in a revocable trust or more simply give them via a will. Both approaches have advantages, although trusts can provide significantly more benefits.\u201d Having a structure in place that […]","datePublished":"2020-05-14","dateModified":"2024-03-21","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263ec183c20.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263ec183c20.jpg","height":849,"width":566},"url":"https:\/\/www.amorusolaw.com\/blog\/does-your-estate-plan-need-a-will-or-a-trustor-both-white-plains-ny-greenwich-ct\/","about":["Coronavirus \/ COVID-19","Estate Planning","Heir","Irrevocable Trust","Probate","Revocable Living Trust","Successor Trustee","Will"],"wordCount":677,"keywords":["Beneficiary","Coronavirus","Estate Planning","Heir","Irrevocable Trust","Probate","Revocable Trust","Successor Trustee","Will"],"articleBody":"\u201cOne of the most fundamental choices you can make as you\u2019re thinking about how to pass your assets on to heirs, is whether you hold assets in a revocable trust or more simply give them via a will. Both approaches have advantages, although trusts can provide significantly more benefits.\u201dHaving a structure in place that clearly directs who is in charge and who gets what assets gives most people a sense of relief about their estate plan. It\u2019s important to understand how a will works, how a trust works and when to use each of these planning tools, reports the article “Revocable trust vs. will: A guide to estate planning in the age of coronavirus” from Bankrate. In many cases, using both achieves the ultimate goal of protecting the family assets and their privacy.The will process is more complex than its typical portrayal in film or fiction. The will directs who is to receive the property of the deceased. Without a will, property may be distributed by the courts, following the \u201cintestate succession\u201d law of the state. That\u2019s usually the next of kin\u2014not always who you want to inherit your estate.If property is owned jointly, then it passes to the surviving owner. Accounts and assets with a named beneficiary go directly to that beneficiary. Any assets held in a trust are subject to the directions in the trust. That is one reason to check all accounts you own and make sure they have two named beneficiaries\u2014primary and contingent. That applies to retirement and investment accounts as well as life insurance policies.The probate court appoints an executor\u2014 who should be chosen by the decedent and nominated in the will\u2014to carry out the directions in the will, pay any outstanding debts, take care of taxes and oversee the distribution of assets. The process of administering the will can be lengthy, depending upon the size and the complexity of the estate. During probate, the will becomes a public document. Predatory creditors are able to see the will, including the amount of assets and their distribution. In many jurisdictions, there are court fees associated with probate that can take a bite (or a nibble) out of the estate.Trusts are used to circumvent some of the issues created when assets are passed via a will. Trusts are legal structures that provide protection for assets. The assets in a trust do not belong to the individual, they belong to the trust.\u00a0Therefore, they are not subject to probate. When the trust is created, a trustee is named whose job it is to manage the affairs of the trust. A successor trustee is named to manage the trust if the primary trustee cannot or will not serve.The revocable trust is used to take assets out of the estate while allowing the asset owner to maintain control over those assets. Assets can be moved in or out of the trust, or the trust can be dissolved, and the assets taken back. However, there are no tax benefits, since the trust owner is the trust maker, the trustee, and the beneficiary, as long as the owner is alive. On the owner\u2019s passing, the designated successor trustee takes over.With an irrevocable trust, there are significant tax benefits. However, there is also a loss of control over the assets.Trusts can cost more to establish than wills, but they offer a number of advantages. The use of a trust means that less or none of your assets will go through probate, speeding up the distribution process. Trusts also protect the family\u2019s privacy, since the details in the trusts do not become part of the public record. There is less involvement by the court in distributing assets, so fees may be lower.Speak with an estate planning attorney about how trusts may play a useful part in your estate plan and for passing wealth down to multiple generations.Reference: Bankrate (April 17, 2020) “Revocable trust vs. will: A guide to estate planning in the age of coronavirus“"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Does Your Estate Plan Need a Will or a Trust\u2014Or Both?","item":"https:\/\/www.amorusolaw.com\/blog\/does-your-estate-plan-need-a-will-or-a-trustor-both-white-plains-ny-greenwich-ct\/#breadcrumbitem"}]}]