What is the difference between a trust or a will?
A will, or last will and testament, is a legal document that explains how you want your assets distributed after you die. A trust is a legal arrangement in which you transfer your assets into the trust and name a trustee to manage them. This means that the trust “owns” all your assets, and your trustee oversees them.
Who should have a trust instead of a will?
Anyone who is single and has assets titled in their sole name should consider a revocable living trust. The two main reasons are to keep you and your assets out of a court-supervised guardianship, and to allow your beneficiaries to avoid the costs and hassles of probate.
What are the advantages of a trust as opposed to a will?
Most of the advantages of having a revocable living trust compared to a Will involve avoiding probate and making the process of transferring your assets to your beneficiaries easier, faster, and more affordable.
Are trust wills a good idea?
Including a trust can give you control over what happens to your property in the long-term. You can name who you want to inherit the property, whilst allowing someone to live there after your death (but they will not own it). Then, when they die, it will go to the person or people you’ve named.
Is it advisable to put your house in trust?
With your property in trust, you typically continue to live in your home and pay the trustees a nominal rent, until your transfer to residential care when that time comes. Placing the property in trust may also be a way of helping your surviving beneficiaries avoid inheritance tax liabilities.
What are the disadvantages of a trust will?
The major disadvantages that are associated with trusts are their perceived irrevocability, the loss of control over assets that are put into trust and their costs. In fact trusts can be made revocable, but this generally has negative consequences in respect of tax, estate duty, asset protection and stamp duty.