Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.
— Benjamin Franklin, in a letter to Jean-Baptiste Leroy, 1789.
Death in some, if not all cases, is very uncertain. Few people plan their life for next 5 years, 10 years and some for life, even after death. Of all the things that go into planning is your real estate. Estate planning in Edmonton is about planning the distribution of your owned property among your heirs, caretakers and third party, at the end of your life. Estate planning can be done either by creating a will or a trust.
A Will is a document that :
- Directs how your property will be distributed,
- Appoints a legal representative to carry out your wishes, and
- Names a guardian for children who are minors at the time of death.
A Will doesn’t stand in all cases such as :
- Joint Tenancy with Right of Survivorship
- Life Insurance Proceeds
- Bank Accounts
- Retirement Plans
A trust, on the other hand, is a legal arrangement through which a person or an institution often called a “trustee,” holds legal title to property for another person, called a “beneficiary.”
Unlike, a will, trust can be exercised as soon as it is created (before death), at death or after death.
A will covers any property that is only in your name when you die. It does not cover property held in joint tenancy or in a trust.
A trust, on the other hand, covers only property that has been transferred to the trust.
Another difference between a will and a trust is that a will passes through probate. That means a court oversees the administration of the will and ensures the will is valid and the property gets distributed the way the deceased wanted. A trust passes outside of probate, so a court does not need to oversee the process, which can save time and money. Unlike a will, which becomes part of the public record, a trust can remain private.
What happens if you die without a Will? If you die without a will, the Wills and Succession Act entail how the property will be distributed.
A properly documented Estate plan ensures, the lesser stress of confusion and legal follow-ups for the family and loved ones after your death.
Your Edmonton based legal pro can guide you how best to use a will and a trust in your estate plan.
The post Why You Need Estate Planning in Edmonton, Alberta appeared first on Right Legal.
