People in Florida plan for events which may occur in the future. This could be planning for potential car accidents by obtaining car insurance or planning for potential damage to their homes by having home owners’ insurance. People usually make a point of planning for events that may occur, but there is one event that is guaranteed in life that people should plan for as well and that is their death.
This is certainly something that people do not really like to think about but it is important to plan for where their possessions will go when they pass away. If people do not plan for it, the possessions will go to the people dictated by the state statues. People do not always want this to occur though. To ensure their property ends up with the people they want, it is important to have a will or trust.
Both of these documents dictates and governs where the property will go, but there are differences between the two. It is important to understand the differences when choosing which one is best for their situation.
Differences between wills and trusts
Wills are generally not as complex and cheaper options. Wills name personal representatives who will gather and distribute the deceased’s property to the named beneficiaries in the will. They go into effect only after people die and the estate will still need to go through probate.
Trusts go into effect immediately and the people’s property is transferred to the trust while they are still living. When people pass away, the trustee will be responsible for distributing assets. Trusts allow people more control over the asset distribution though and the beneficiaries do not necessarily receive the property right away. The property in the trust also avoids probate.
It is important that people in Florida go through the estate planning process whether people choose to have a will or a trust. Experienced attorneys understand the differences between the two and may be able to guide one through the process.