Series 65: 5.1.3.1.2.2. Estate Plans: Trusts Vs. Wills

5.1.3.1.2.2. Estate Plans: Trusts vs. Wills

Most people have some sort of estate plan that can be used to pass on their assets after death. The simplest estate plan is a will. A will is a written document that lays out how a person’s assets should be distributed upon death. A will must be witnessed by two people and signed by the creator to be valid. A will is created when a person is still living and it is revocable at any time. Many people use a will to name the persons who will become guardians to their children should they die. Wills are relatively inexpensive to create and do not require upkeep. You will need to name an executor of the estate who will manage your estate after you die.

Living trusts are another alternative. Living trusts allow a person to hav