Are you thinking about where your assets will go upon your death? Then perhaps the first thing that came to mind is that you need a will. However, what you may actually want to do is set up a trust. What is the difference between a will and a trust in Wisconsin? We’ll take a close look at both wills and living trusts. If you need help setting either of these up in southeast Wisconsin, then consider coming to Collins Law Firm
Is a Will Simpler Than a Living Trust?
This is often the reason why people write out wills instead of setting up living trusts. Wills are simpler to set up in the first place. However, though it is simpler to set up, it is more difficult to execute. This brings us to the biggest difference between the two.
Anything that is not established in a living trust, will have to go through probate courts before it goes to beneficiaries. No matter how good your will is, the courts will still have to get involved, which can be both time-consuming and financially burdensome.
Read More: How to Set Up Power of Attorney in Wisconsin
However, this can also be seen as a benefit. If time isn’t an issue, and you’d rather give the courts oversight as your assets are accounted for and distributed, then a will can still be a good idea. You can also use a will to supplement a living trust. Often referred to as a pour-over will, these wills can handle anything that doesn’t go into your trust.
What is a Living Trust in Wisconsin
A living trust is like a will except that there is a trustee designated to manage the assets for the eventual beneficiary. This can make it easy to transfer assets to minors when they come of age even if they come of age after your passing.
The assets in a living trust will bypass probate court entirely. In fact, your assets can reside inside the trust while you are still alive, or you can install provisions for specified assets to pass into the trust automatically upon your death. In this case, the trust is called a testamentary trust. Which can make setting up a living trust for the average person much more manageable and attractive.
There are two types of living trusts. A revocable living trust is the one that will interest most people as the person creating the trust will still be able to revoke or amend the trust. However, in this case, they are still liable for the assets for tax purposes. On the other hand, an irrevocable trust can only be changed or revoked in specific and limited circumstances.
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