No matter the amount of wealth you have amassed, you need to have an estate plan to ensure that your assets are protected and go to the people you want after your demise. There are many tools that are available for estate planning, of which wills and trusts are the most important ones. A will decides how your properties are divided upon your death and must go through a probate process. A trust, on the other hand, allows you to skip the probate. Before you make a decision, consider consulting a Reno Estate Planning Attorney for personalized assistance about your situation. Here’s an overview for your help. 

Pros and cons of wills

Wills are extensively used for estate planning and only come into effect after the death of the person. Besides being a simple tool, creating a will is also inexpensive, with no need for changing asset titles. At the least, your estate plan should have a will. However, the probate process is probably the downside of a will you cannot ignore, and because your loved ones will have to deal with it after your death, this can sour relationships. Wills are also not useful when it comes to planning for incapacitation and disability, and you cannot manage or restrict inheritances. Wills are also a part of the public record. 

Pros and cons of Living Trusts

Living Trusts allow you to avoid the probate process, which also comes at a cost. You can have a say on inheritances and can decide how your assets are managed. You can also plan provisions for your disabilities and incapacitation. Unlike wills, living trusts are not public records. On the flip slide, you will have to re-title assets, and in comparison, creating a trust is more expensive. 

Is one option better than the other?

The short answer is no. A living trust is more useful when you have more real estate properties. That’s also because there is a probate process, which can otherwise add to the expenses. Also, with a living trust, you can ensure that your assets are protected, especially if you have young children or kids who do not value your finances and hard-earned money. A living trust makes room for having control. A will is more of a perfect choice when there is no worry about your children’s inheritance. If you don’t have much in real estate, a will is still adequate. 

Call an attorney now to find more!