When it comes to estate planning, two common instruments that people use to distribute their assets and protect their families are a will and a trust. However, despite their similarities, there are several key differences between a will and a trust in Arkansas. In this blog post, we’ll take a closer look at these differences and the pros and cons of each option.
A will is a legally binding document that outlines how you want your assets to be distributed after you pass away. It typically includes instructions on who will inherit your property, who will be appointed as the executor of your estate, and who will act as guardian for any minor children. In Arkansas, a will must be in writing and signed by the testator (the person making the will) in the presence of two witnesses.
A trust is a legal arrangement where a trustee holds and manages assets on behalf of the beneficiaries. Unlike a will, a trust takes effect immediately upon creation, and it provides asset protection for your beneficiaries during your lifetime. Trusts can be revocable (changeable) or irrevocable (unchangeable), and they can be created for a variety of purposes, including tax planning, asset protection, and estate planning.
In conclusion, a will and a trust are both useful tools for estate planning, but they serve different purposes and have different advantages and disadvantages. The best option for you will depend on your specific needs and circumstances, so it’s important to contact The Plummer Firm today to help you make an informed decision.