An estate plan can be created with a variety of different tools, but two of the most common options are a will and a trust. Most people are familiar with wills. You likely have heard of a trust, but may be unclear who should use a trust. Here are some of the benefits and drawbacks of using a trust for estate plans.
There are many options to consider when creating an estate plan. So much so, that all the terms can get confusing. Wills. Trusts. Powers of attorney. It's so confusing that one study shows only 40% of people have a will or trust.
If you want to ensure that your assets are handled the way you want them to be handled, or you want to make sure your relatives can avoid probate court, a trust might be a good option for you. There are a few different types of trusts, but all trusts are just legal documents that specify how property and assets should be managed and who will manage them.