Individuals and families have many options during the estate planning process. Regardless of a person’s age, they can put plans in place that will help them manage their assets, provide for the needs of themselves and their loved ones, and ensure that their property will be distributed to their beneficiaries. While wills may be used to address how assets should be passed to heirs after a person’s death, trusts may also be used to manage assets during a person’s life and ensure that they are distributed correctly to their beneficiaries. In some cases, a person may wish to combine these tools through the use of a pour-over will.
Using a Will to Transfer Assets to a Trust
Trusts can provide a number of benefits, including allowing a person to maintain control over their assets, provide for their own needs, and make sure assets are used for specific purposes when distributed to beneficiaries before and after the person’s death. Ownership of assets may be transferred to a trust, and a trustee will be provided with instructions on when and how to distribute assets to different beneficiaries.
With a revocable living trust, a person will often act as the trustee and maintain control over their assets during their lifetime. Irrevocable trusts may also be used in certain situations, such as when a person wants to make sure their assets will be protected from creditors. A trust will include detailed instructions for how assets should be distributed after a person’s death. However, there may be some situations where a person owned assets that were not included in a trust, and they may want to make sure these assets will be handled the same as other assets after they die.
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