The website of the Chicago probate lawyers at Peck Ritchey, LLP explains that estate planning assures that loved ones are taken care of after their main provider is deceased. The laws behind estate planning are constantly changing, so pursuing legal help will keep you from producing illegitimate documents. Before beginning estate planning, one must decide whether they want a will or a trust.
A will is a document that explains who one wants their possessions to go to after their death, whereas a trust spells out a predetermined time when the provider’s trustees will receive their funds.
Trusts tend to be harder to dispute than wills, especially because the assets for trusts are not automatically frozen after the date they come into effect. In the case where someone is concerned a beneficiary may not receive what is allocated to them, a trust is generally a better option.
Conversely, if someone cares deeply for their beneficiary but does not completely trust that they will handle what they are given responsibly, a will may be a better option.
In terms of which one is more cost effective, it depends on the person’s situation. A trust usually costs more to implement, but if one has a lot of disposable income the tax breaks received by putting money in a trust will exceed the amount of money used to create the trust.
If one wants to leave money for a specific occasion – say their child’s wedding – a trust would be an better option. This is because the money is given to them no sooner or later than the provider intends for them to have it. Because trusts are based around the idea that the benefactor receives assets in a specific moment, they are more likely to get their funds as soon as possible. This assures that the what is given will be available when the provider intended it to be.