Trusts and wills come in many varieties, but for the sake of this article, we’re going to focus on two of the more popular choices – a revocable living trust and last will and testament.

A trust is a legal entity established to help you protect, preserve, and grow the assets you have accumulated and continue to accumulate during your lifetime. Your trust holds assets such as your investments, house and other assets you own and eventually distributes them when you die according to your wishes. There are numerous advantages to having a trust including control over your wealth, protection of your assets for future generations, the elimination of the public probate process, potential tax savings and naming someone to take charge should you become incapacitated.

Doesn’t a will cover all this? NO! A will and trust serve two very different purposes. While everyone should have a will, not everyone needs a trust. However, many people find both beneficial. A will takes effect after you die and includes instructions on who should be guardian of your children, funeral arrangements, and details of property you chose not to title in the name of your trust. A will is also subject to the probate process which means your will is public record and anyone can go to the courthouse and learn about your financial affairs.

A revocable living trust on the other hand, is in effect while you are alive. It serves as the holder for all the assets you put into the trust with clear instructions for who receives what. The trust is not subject to probate which keeps your matters private and saves your family time, money, and potential confrontations with family members. While alive you may add or subtract assets to your revocable living trust. When a person dies the revocable living trust becomes irrevocable. At that point, the estate is settled, and the trust is the official document that determines when and what assets the beneficiaries receive. It also serves as the roadmap and set of instructions for the trustee on how to settle the estate.

Who is going to settle your estate? It can be a thankless, time consuming task that comes with great responsibility and is the reason why many people choose to have a corporate trustee. When a corporate trustee like Credit Union Trust is named in your estate planning documents, it allows your family to focus on the things they find important and gives them the peace of mind knowing that a professional trustee is going to settle the estate in a timely, efficient, and accurate manner.