Before proceeding into the broader objectives of Estate Planning, we need to understand, what it is all about. Estate planning is the process of drawing out a plan, with respect to your assets and their careful allocation. You need to ascertain that your property and assets falls in the right hands, after your death or in case of any physical disability.
Now, you need to know about some jargons which are connected to estate planning. That is very important. Even, if you delegate the work to an estate planning attorney, you need to be up to date with norms in this area.
It is the process taken up by the court, to determine the consequences of a will. If there is no will, then a committee or executor is formed by court of law, who decides on the duties and responsibilities to be performed to pay off liabilities or collect the receivables.
Living Trust –
It is a legal entity, which you can form with intervention from legal authorities. The trust becomes your vehicle to take decisions. You become the trustee of the trust. You are not the original owner any longer. Even if you due, the trust remains alive. It can take decisions on your behalf.
A will is a legal document, in which an incumbent enlist who shall be the successor.
So, now that you have fairly understood, what a will is, it is time to find out the difference between the will and the living trust. The will lists who will be your executor, your successor, who will be the legal guardians, if you have children and who would have the burial rights, after your death.
Whereas, the Living Trust is an independent body that manages your assets, after your death and goes on independently. So, you are done with understanding the basics of estate planning. You need to still appoint an estate planning attorney, to carry on the case, as in most cases.