Wednesday, January 4, 2012

Wills versus Trusts

People often ask about the differences between a will and trust, so here are some general contrasts...


A will does not avoid probate.  A trust can avoid probate, but only if the trust is properly funded.   A will only comes into effect when you pass away.  A trust can hold assets while you are alive.  A trust can be useful if you have property out of estate, as real estate is governed by the probate rules where it is located.  


As such if you own 3 pieces of property, each in a different state, if they are not owned by a trust, you are looking at three different probate procedures. For added perspective, you might review a related article on our website.



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