Trusts can be owned or managed by the trustee, while the settler is still alive. Under various circumstances such as illness, disability and resign from the post, trustee will get the hold over the property and can conduct the trust, abiding by the terms and conditions of trust.
Contrary to that, estates enable the beneficiaries to own the property only after the death of the owner. In special cases, where the beneficiary wants to use the property, while the will holder is still alive, he/she needs to get power of attorney from the owner.
As trusts don’t require probate, to get a hold over the trust, no probate cost is there, as the property automatically comes in the favour of trustee. But estates are subjected to bear the probate cost, and if there are some complexities such as, debt payment and making the final settlement, probate process might turn very expensive.
Trusts can save you from a lot of tax. Mostly people having property above a certain amount opens a trust, to save them from the over payment of tax. If you are a beneficiary of estates, you are liable to pay inheritance tax, if the estate crosses the particular limit, set by government.
Expert will and estate lawyers are required to arrange the documents related to management funding for the trust. Documentation work makes the process of creating trusts very expensive. Contrary to that, preparing a will for estates is free, and there is no costly documentation work required for that.
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