In a recent episode of our Wealth Matters radio show, Gaslowitz Frankel partners Craig Frankel and Robert Port met virtually with special guests Richard Barnes, founder of BarnesLaw LLC, and Caroline Bradshaw, Sr. Vice President & Managing Director, Trust Administration at Cumberland Trust to discuss the reasons people need trusts and how to navigate naming fiduciaries.
Here are some of the key points from their discussion.
What is the Difference Between a Will and a Trust?
The primary distinguisher between these two documents is that a will takes effect once you pass away. Up until then, it is fully changeable. You can create as many wills as you like, and the most recent version will be used as the final agreement should you pass away or become incapacitated.
A will can contain a trust, and the trust goes into effect as soon as it is created. A trust is an agreement between you and a 3rd party that designates assets and property for a trustee to manage on behalf of their loved ones who they have designated as beneficiaries. This trust provides a way for the decedent’s wishes to be carried out in a specific way.
“A will is created for a specific moment in time,” says Caroline Bradshaw. “A trust is a dynamic instrument that lives with your dynamic family as they mature, as they have children, and as unforeseen circumstances come up.”
Why Should I Create a Trust?
Richard Barnes explains that one of the reasons why you should create a trust is that a will can fall short when the grantor experiences incapacities due to illness or old age and they are no longer capable of handling their own affairs. Unlike a trust, a will doesn’t do much to protect the grantor from being taken advantage of by corrupt advisors. A trust explicitly lists how the individual will want their assets to be managed if such incapacity takes place, limiting the amount of asset exposure to perpetrators of financial abuse.
How Do You Know What to Include in the Trust?
Many factors can determine what goes into your trust, and these things will likely change over time due to the unpredictability of life. At the end of the day, it is up to you to determine how you want to pass on your wealth based on your goals. However, bringing your loved ones and intended beneficiaries into the conversation is a good idea to prevent disputes down the road.
To learn about whether or not you need a trust, listen to the full episode of Wealth Matters here. If you are involved in a dispute over a will, trust, or estate, call us at 404-892-9797 for a case evaluation.
Gaslowitz Frankel LLC is Georgia’s premier fiduciary litigation law firm. The firm has earned a reputation for excellence across Georgia and the Southeast in providing representation to individuals, executors, trustees, investors, shareholders, and financial institutions in complex fiduciary disputes involving wills, estates, trusts, guardianships, conservatorships, businesses, and securities.
