When deciding between a trust agreement and a last will and testament, there are many things to consider. You need the right plan in place for you and your loved ones. When it comes to elder care law, what is the difference between will and trust planning?
The first, and arguably most important, is that wills do not offer the complete coverage you need in Florida. This is a key difference between will and trust planning. A will, on its own, cannot be your financial, legal and medical plan. It is only used when you pass away and does nothing to protect you from the high costs of long-term care or the guardianship court. A trust agreement, however, can offer more comprehensive planning in Florida.
Together, you and your elder care attorney can create a plan to meet your specific needs. We know it can be challenging to understand the difference between will and trust planning. Let us share a few critical reasons why you need a trust agreement instead of a will to protect your elder care needs.
1. Stay out of probate court. When you place your assets in a trust, you do not own them – your trust does. This is a key difference between will and trust planning documents. Your trust is seen by the eyes of the court as a “legal person.” You control the assets as if they are yours throughout your lifetime. When you die, only your assets go through probate. Since your assets are placed in a trust and you legally do not own the trust property, it doesn’t have to go through probate.
2. Trusts are completely private. A trust agreement is a private document. Unlike a will, which becomes public through the Florida private process, a trust ensures your privacy. If you want to make an important legal decision but want it to remain private, such as disinheriting a child, this may be the planning choice you want to use.
3. Trust agreements are quicker than probate. In probate, you are subject to the court’s timeline. This can be a process that lasts months or years. Timing is a main difference between will and trust planning. Because trust agreements are managed by an attorney and not subject to probate, the trust administration process can be much quicker.
4. Trusts allow you to protect your assets. While a will simply lays out instructions for your assets and beneficiaries once you pass away, a trust agreement allows you to maintain control of your assets. This can include protecting your assets from the high cost of long-term care. Specific trusts can be created to reach very specific goals. Do not wait to discuss this with your attorney.
5. Trusts can take the place of a durable power of attorney. If you become incapacitated, your trustee can manage your assets in trust without court supervision. In this capacity, having a trust can take the place of your durable power of attorney. This a yet another main difference between will and trust planning that is a key consideration for you.
Most people assume creating a will is enough to protect themselves and their family members but this is far from the truth. Our goal in this article is to share the difference between will and trust planning. We know you may have many more questions and want you to contact our office to let us help you protect your future!