Comparison among wills, trust and estate
Comparison among wills, trust and estate:
Harter (2004) says that a will is one which describes how the decedent’s estate is to be disposed off. A will explains how much of the decedent’s estate each beneficiary is to receive. Also, those who have minor children can appoint a guardian for them (Munley, Munley & Cartwright, P.C.).
A trust also known as a living trust, is one that describes as to how the property of the creator of the trust is to be used after the trust has been created and even after the creator of the trust has died (Harter, 2004). Unlike a will, a trust is established during one’s lifetime. It is used to help administer the creator’s property when he alive and continues to do so after his death (Munley, Munley & Cartwright, P.C.).
An estate is something which includes all the elements a person owns. For instance, a person’s land, buildings, clothes etc. are part of his or her estate. When he dies, his estate is distributed according to his will. The division of a person’s estate is called settlement of the estate (AFSP).
The Will of Mr. & Mrs. Green:
We, Mr. & Mrs. Green are making the following declaration, willfully
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each of our children namely, Mary, William, Virginia, Henry, and Jeffery to receive $ 10,000,000,
each of our grandchildren namely, Dion, Jane, Rebecca, Ryan, Sammy, Tony and any unborn grandchildren to receive $ 1,000,000,
Jeffery to receive our dry cleaning business,
Fluffy to receive $ 500,000 (upon Fluffy’s death, the balance of his inheritance goes into the local animal shelter)
Geeves to receive $ 1,000,000 only if continues service with us until our deaths.
After distribution of this wealth the remaining part of our estate (which is $ 17,500,000 if no more grandchildren are born) goes into setting up a trust for college scholarships to a local university.
We hereby, declare that this will is to be followed for the distribution of our wealth else we declare otherwise.
We made this declaration on ___________________
Witness’ signature Witness’ signature: ___________________________
Witness’ address Witness’ address: ____________________________________
Differences Between Wills And Trusts. Munley, Munley & Cartwright, P.C. Retrieved May 30, 2007 from http://www.munley.com/wills_living_trusts.html
Harter, P. (2004, February). Trust/ Will. What Is The difference Between A Will And A Trust? Retrieved May 30, 2007 from http://courts.co.calhoun.mi.us/quest740.htm
Surviving A Suicide Loss. American Foundation for Suicide Prevention. Retrieved May 30, 2007 from http://www.afsp.org/financialguide/pages/estatea.html