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Wills and trusts are two essential estate planning tools that allow you to leave instructions about how your assets should be distributed upon your death. However, beyond this basic function, they are distinctly different from one another. Understanding how they vary is crucial to ensure you have a comprehensive plan in place. For over 40 years, the residents of Honolulu, HI, have relied on the Law Offices of Neil T Nakamura & Associates for quality guidance during every step of the process. Below, they review wills and trusts and how they differ.

Wills

wills and trustsWills go into effect after the owner’s death. An executor is typically designated to help carry out the deceased’s wishes and manage the estate’s affairs. Wills may only include property that is under sole ownership and address certain issues, like the guardianship of minor children, funeral arrangements, and debt forgiveness. These matters cannot be dealt with in a trust. Another distinguishing factor is that wills must go through the probate process while trusts are not required to do so.

Trusts

Unlike a will, trusts go into effect as soon as they are developed. A trustee is appointed to hold title to assets belonging to the individual who created the document. They oversee the distribution of property while the individual is still alive, if they become incapacitated, and after they pass away. A trust may address issues that a will cannot, such as insurance policies and jointly owned property. Since they don’t go through probate, they allow assets to be distributed more promptly and remain private, rather than become a matter of public record as wills do.

When outlining their final wishes, many people find it effective to use wills and trusts together in their estate plan. The best way to determine which documents will benefit your specific situation is to consult with an attorney at the Law Offices of Neil T Nakamura & Associates. They are available to answer all your estate planning questions and ensure your paperwork legally stands up in court. Contact them at (808) 945-7645 for an appointment, or visit their website to learn more about the services they offer.

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