Wills And Trusts
Creating a will or trust can offer peace of mind to you and your family when you pass away but there are subtle differences between the two.
Wills
Although not compulsory by law, writing a will is an important step in deciding what will become of your assets when you pass away. By writing a will, you can make sure exactly how your assets such as property and possessions are shared out among your friends and relatives. Not writing a a will may leave your assets vulnerable to being distributed according to the law, not by your wishes. A will can protect loved ones from difficult financial and legal circumstances. This may include who will look after dependents such as children after your death. A will usually begins upon the death of the person who writes the will, known as the 'testator'.
Trusts
Similarly, trusts are created to make sure assets are distributed exactly how the donor wishes and can be written into a will or formed as their own legal entity. The main difference is that a trust may begin during the donor's lifetime or post-humously. Because they are expensive and complicated to produce, trusts are usually only worthwhile when passing down large estates or larger assets. They are however, ideal if the beneficiaries are either to young or incapable of managing financial affairs. Trusts also may provide a more tax efficient way of transferring assets to beneficiaries.
Will Trusts
A will trust is a trust which is written into a will and will only commence on the death of the donor or testator. Read more will trusts.
Creating a will or trust can be a difficult task which needs to be properly prepared if it is to be legally binding. It is usually best to seek advice when considering writing a will or trust. An independent financial advisor may be able to help you decide on which is the best option for you:
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