What is the difference between a will and a trust? – Carpenter & Lewis PLLC

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Transcript:

00:00:03 So I wanted to take a minute or two just to answer a question that we hear all the time and that is what is the difference between a will and a trust. So a will is a legal document that you that says who gets your property when you pass away. It allows you to do things like naming guardians for minor children and it’s an important tool and for some families that’s all they’re going to need. But what we realize that many of our clients don’t realize is a will is only effective after you pass away and it has to go through what’s

00:00:35 called probate. And probate is the court process for settling your estate. And in Tennessee, especially depending on circumstances, that process can be expensive and public and time consuming and stressful for your family. So that’s the will. On the other hand, we have the trust, specifically what we call a revocable or revocable living trust. And that’s a different approach. With a trust, you can transfer assets into a legal structure during your lifetime. You’re in control while you’re alive.

00:01:05 But when you pass away, if the trust is properly prepared, your assets can then go directly to your beneficiaries without probate. It’s private, it’s efficient, and it’s usually much smoother and more cost-effective for your family. So the short version, the will works only after you pass away, but it has to go through what we call probate. And a trust works during your lifetime and after you pass away and avoids probate entirely. But every family situation is different. And that’s why we want to take the time to

00:01:38 understand your goals and help you put the right plan in place.