In this article I will explain the difference between a Will-based plan and a Trust-based plan so you can make an educated decision for your family about what is best for you and, ultimately, for them.
A Will-based plan is an estate plan that does not include a Living Trust to hold title to your assets. If you work with us and choose our Family Plan, which is a will-based plan, your legal documents will include a Health Care Directive, Power of Attorney, a Will and, if you have minor children, a Kids Protection Plan®.
A Trust-based plan is an estate plan that does include a Living Trust to hold title to your assets during your lifetime and to provide for ease of transfer of those assets in the event of your incapacity or death. If you work with us and choose our Trust Plan or Wealth Plan, your legal documents will include all of the documents included in the Family Plan PLUS one or more Living Trusts.
So, what’s the practical difference?
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 indicates WHO you want to have access to those assets and how you want them distributed, but it does not keep your family out of the Court process. Going through probate (or guardianship in the event of incapacity) is expensive, time-consuming, totally public and unnecessary. And that’s what happens when you have only a Will in place and not a Trust.
When you have a Trust in place, there is a bit more work for you to do upfront because you need to make sure that all of your assets are owned in the Trust throughout your lifetime (or insurance assets are beneficiary designated to the Trust), but we help you with that or even do it for you.