If you are currently planning your estate, you may be trying to figure out if a will or a trust is better to draft. An attorney can help you decide which one is best suited for your individual situation, but in the meantime, keep reading to learn the answers to some of the more commonly asked questions about trusts and how they can affect your estate plan.

What Exactly Is a Trust?

A trust is a fiduciary agreement that is binding by law and allows a third-party individual to hold another individual's property until it can be distributed among the named beneficiaries. A living trust can be drafted as part of your initial estate plan, but it can also be revoked later on before you pass away if you deem it to be necessary.

What Benefits Do You Have to Realize from Drafting a Trust?

One of the primary benefits of a trust is that your assets will not be required to go through the process of probate like they would if you only had a will. This can save your named beneficiaries a significant amount of time, frustration, and money. In addition, a trust had the ability to preserve your assets for the named beneficiaries until they reach the age at which they are able to legally manage them.

What Disadvantages Are There to Drafting a Trust?

One of the main disadvantages of having a trust drafted is that it can be more complicated and complex than having a will drafted. For a property to be included in a revocable trust, it must first be registered, and this can often include a considerable amount of paperwork and filing fees. Regardless of the additional work that is required, it is generally worth it, in the long run, to have had a trust established.

What Type of Assets Can Be Included in a Trust?

The great thing about a trust is that it is able to include assets that are unable to be included in a will. Some of the assets that can be placed into a trust include cash, non-qualified annuities, brokerage accounts, business interests, life insurance, copyrights, trademarks, real estate, and personal property like furniture and jewelry.

If you are thinking about planning your estate, you may want to give some thought to establishing a trust. If you have questions, make a list of them and get in touch with a trust attorney.