When it comes to estate planning, two common tools are often considered: the revocable living trust and the last will and testament. While both serve the purpose of distributing assets upon death, these are marked by distinct differences that can greatly impact your estate plan. Know about the top five differences between an Alabama revocable living trust and a will to help you make an informed decision.
Probate Avoidance
A revocable living trust allows your assets to bypass probate, the legal process of validating a will. This means your beneficiaries can receive their inheritance faster and with less hassle.
In contrast, a will must go through probate, which can be time-consuming and costly.
Privacy
Privacy is a top advantage of a revocable living trust. Since trusts are not subject to probate, your assets and their distribution remain private. Conversely, a will becomes a matter of public record when it enters probate, allowing anyone to view its contents.
Flexibility and Control
With the use of free revocable trust forms, you retain control over your assets during your lifetime. You can modify or revoke the trust at any time, making it a flexible tool for estate planning.
On the other hand, a will only takes effect after your death and cannot be changed, except through a codicil or by creating a new will.
Incapacity Planning
A revocable living trust provides a mechanism for managing your assets in the event of incapacity. If you become unable to manage your affairs, the successor trustee named in the trust document can step in and handle your assets according to your wishes.
A will, however, does not address incapacity and only becomes effective upon death.
Property Distribution
A revocable living trust and a will – both of these documents dictate how your assets will be distributed. However, these distribute in different ways. A trust allows for the immediate transfer of assets to beneficiaries upon death or at a specified time, without the need for probate.
In contrast, a will distributes assets through the probate process, which can be subject to delays and challenges.
Author Bio-
Carl writes often about legal drafting and help.