You work hard for your money and want to ensure that your wealth distribution goes according to your wishes upon death. Sadly, many people simply don’t understand the difference between wills and trusts and how they can affect inheritance. Don’t be one of them! Take control of your wealth distribution by understanding what wills don’t control and the benefits of a trust. Wills vs. Trusts, you need to know the difference.
5 Things a Will Does Not Control
Most people believe that a will encompasses and controls all of your assets. That is simply not the case. Proper asset ownership for will-based plans can be confusing. However, the bottom line is that a will only controls assets in individual names; it does not control:
- Trust assets
- Retirement accounts / pension plans
- Life insurance
- Annuities
- Employee benefits
While having a will allows you to avoid having a court decide who gets what, a trust can generally protect you even further.