The Difference Between Will-Based Plan VS A Trust-Based Plan
This question arises frequently: what IS the difference between a Will-based plan and a Trust-based plan so you can make an educated decision for the family about what is best for all.
A Will-based plan is an estate plan that does not include a Living Trust to hold title to the assets. If a Family Plan is chosen, which is a will-based plan, the legal documents will include a Health Care Directive, Power of Attorney, a Will and, if there are minor children, a Kids Protection Plan®.
A Trust-based plan is an estate plan that includes a Living Trust to hold title to the assets throughout your living years. It also provides for ease of transfer of those assets in the event of incapacity or death. When the Trust Plan or Wealth Plan is selected, the legal documents will include all of the documents included in the Family Plan PLUS one or more Living Trusts.
What Does It Mean?
The difference between a Will-based plan and a Trust-based plan is that without a Trust in place your family would have to go to Court to get access to your assets in the event of your incapacity or death.
Your Will outlines WHO you want to have have those assets and how you want them distributed. Unfortunately, it does not keep your family out of the Court process. When you must go through probate or a guardianship if you become incapacitated, it is expensive, takes months (or years), is totally public and completely unnecessary. When you only a Will in place and not a Trust, this is the result.
When an individual has a Trust in place, it is true, it IS a bit more work for you upfront because you need to make sure that all of your assets are owned in the Trust while you are living. Most estate planning attorneys either help you accomplish this, show you how to do it yourself, or can offer a service that will get it all done for you with an additional fee.
At Keystone Law Firm, we have a TrustCare™ program which includes an annual review process in the membership plan. With this, we continue to make sure your assets are owned the right way throughout your lifetime, while also ensuring your plan stays up to date as your life changes. Whatever happens in your lifetime to change your situation, we make those changes for you.
During your Discovery Hour™, Keystone walks you through an assessment of whether a Will-Based Plan or Trust-Based Plan is right for you based on the specifics of your family circumstances. We look at what you own, where your life is headed and what your future is expected to look like. We help you to be that you make the right decisions for you and your family, every step of the way.
Knowing how a property should be titled makes a big difference in your estate planning. At Keystone Law Firm, we use our estate planning experience to help clients like untangle property issues relating to your estate plans. Call us at (480) 418-8448. We offer services for clients throughout Arizona, including Chandler, Gilbert, Sun Lakes, Tempe, Phoenix, Mesa, Scottsdale, and Apache Junction.
