Wills & Trusts

The Importance Of Wills And Trusts

Wills and trusts are tools used in estate planning to help accomplish the creator’s goals and objectives. At the very least, a will should be crafted ahead of time. A well-devised will can ensure that the wishes of the testator are carried out according to the specifications they laid out in the document. The testator is the person who creates a will. A trust, on the other hand, can protect and manage the assets that are valuable to the settlor while they are alive and long after they are gone. The settlor is the equivalent of a testator. A settlor is the term used for a person who creates a trust. Trusts can also be used to take advantage of certain benefits for both the settlor while alive and those who will inherit the assets in the trust after the settlor has passed away.

Ensuring that the needs and wishes of a person are enacted after death requires thorough estate planning. It is advised to enlist the assistance of an experienced estate planning attorney in Little Rock, AR who has in-depth knowledge and expertise with wills and trusts.

Wills

A will is a document that is also known as a last will and testament. It goes into effect after its creator or the testator passes away. A will can detail a person’s wishes in regard to the distribution of their property and assets. It can also specify who can take care of the testator’s minor children if he or she is a parent and dies while the children are young. Without a will in place, a person’s wishes may not be honored. The estate, which consists of a person’s assets and property, will be distributed according to the court’s specifications. In these situations, the court may not consider how the deceased wanted to distribute their property and assets among their heirs. What’s more, an estate that is left without a will tends to be costlier and more challenging to probate than one with a will in place.

In order for a will to be effective and recognized by the probate court, it must be valid. An estate planning attorney in Little Rock, AR can ensure that a will is created and prepared correctly.

Trusts

In addition to a will, a trust is a great legal instrument to include in an estate plan. Trusts are vehicles that allow the creator of the trust or settlor to hold and manage assets in a fund. Depending on the circumstances surrounding the creation of a trust, the assets can be held for a beneficiary or the settlor’s benefit. Further, there are various types of trusts. Each kind of trust serves a distinct purpose and are either revocable or irrevocable. It is recommended to talk to an estate attorney to determine the best trust options.

Trusts are mainly used for wealth management and control, asset protection, and to avoid probate. Since trusts do not have to go through probate, beneficiaries can gain control of assets much quicker and save money on court fees, potential taxes, and the probate process.