When planning your estate, deciding between a will-based plan and one that is trust-based is a serious matter that will have a variety of consequences. For this reason, it is essential that you consult with an estate planning attorney with specific knowledge of both wills and trusts and the pros and cons of each in order to make an informed decision. If you live in South Central Wisconsin or Minnesota, contacting the experienced legal team of Borakove Osman LLC is a wise move.
Wills and Trusts: Defining Terms
Wills are legal documents that outline how your assets should be distributed after a death. It designates an executor to manage the estate, beneficiaries to receive the deceased’s assets, and a guardian for minor children. Wills must go through probate, a court-supervised process of validation. Probate is a matter of public record.
Trusts are legal entities into which assets are transferred either during the grantor’s lifetime or upon their death. A trust is managed by a trustee for the benefit of designated beneficiaries, according to the terms set by the grantor. Unlike wills, trusts typically avoid probate, providing for a private, less time-consuming, and typically less costly distribution of your assets.
When you complete a trust plan with Borakove Osman LLC, a pour-over will is included as part of your estate plan which does allow you to appoint guardians for your minor children.
Advantages of a Trust-Based Estate Plan
- Avoiding Probate
Trusts typically bypass the probate process, allowing for faster, more private, and often less expensive asset distribution. This is particularly helpful if you have a complicated and/or high-net-worth estate. - Continual Management
Trusts provide for the ongoing management of assets, beneficial if you become incapacitated or for managing inheritances of minors or beneficiaries with special needs. - Flexibility and Control
Trusts offer greater flexibility and control over the distribution of your assets, including allowing you to set conditions for distributing assets.
Advantages of a Will-Based Estate Plan
There are distinct advantages to creating a will-based estate plan:
- Simplicity and lower cost
Creating a will is generally simpler and less expensive than setting up a trust. It’s a straightforward way to ensure that your assets are distributed according to your wishes. - Guardianship appointments
Wills allow you to appoint a guardian for your minor children, something that cannot be directly accomplished with a trust. When you complete a trust plan with Borakove Osman LLC, a pour-over will is included as part of your estate plan which does allow you to appoint guardians for your minor children. - Probate court supervision
While often viewed as a drawback, probate can provide structured supervision of asset distribution and ensure that the executor adheres to the will’s terms and state laws.
Factors That Will Affect Your Decision
At Borakove Osman, we will listen attentively so that we understand fully the nature of your estate, its size and complexity, and the distinctive elements of your family and your assets. We will pay particular attention to:
Complexity of Estate
Larger, more complicated estates, i.e. those of high net worth, multiple properties in other states or countries, and/or multiple businesses, usually benefit by being based on the flexible structure of a trust. This is especially true because multiple properties in various locations may each have to be probated individually.
Family Dynamics
It is vital to consider your beneficiaries’ needs and special circumstances when determining whether a will or a trust will be better. If you have minors in your family or family members with special needs, such as a disability or an addiction, trusts can provide mechanisms for managing their assets that wills cannot.
Privacy Concerns
There are a number of reasons you may want to keep the details of your estate private, such as preventing harassment by the press if a family member is well-known. Whatever the reason, if privacy is a priority, a trust is definitely the way to go.
Cost and Time
Our adept estate planning attorneys will assist you in evaluating whether a will or a trust will best serve your financial circumstances. While a will is simpler and less costly initially, a trust can save you time and money in the long run, especially if you are in a high tax bracket.
How Borakove Osman Will Help Clarify Your Situation
At Borakove Osman LLC, we understand the intricacies of estate planning within the legal framework of South Central Wisconsin and Minnesota. Our skilled attorneys will walk you through each step of the decision-making process, providing:
- A detailed analysis of your personal and financial situation.
- Clarification of the legal terms and processes involved in wills and trusts.
- Personalized recommendations tailored to your needs and goals.
- Assistance in drafting a comprehensive estate plan that reflects your wishes while optimizing for tax implications, family dynamics, and future needs.
Why Some Estate Plans Need Both a Will and a Trust
Some individuals find that having both a will and a trust is the most effective approach to estate planning since each can serve purposes that the other does not. By utilizing both tools, you can enjoy the benefits of a trust’s privacy and efficiency while also covering assets or decisions outside the scope of the trust with a will.
Contact Our Experienced Madison & Dane County Wills and Trusts Attorneys Today
Over more than a decade in practice, the wills and trusts attorneys of Borakove Osman have earned a reputation for being both capable and caring. By partnering with us, you ensure that your estate plan will be tailored to your individual circumstances and goals, and that you will choose the best structure, will-based, trust-based, or a combination of the two, to protect your assets and your loved ones. Contact us today.