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Understanding Wills and Living Trusts
When planning your estate, it’s essential to choose the right tools to protect your assets and ensure your wishes are honored. Wills and living trusts are two of the most common options, each serving unique purposes. At NLCI Your Real Estate Lawyer Professional Corporation, we guide Scarborough clients through the estate planning process, helping them determine whether a will, a living trust, or a combination of both is best suited for their needs.
Explore more about our Will and Estate Law Services and how we can assist in creating a plan tailored to you.
What Is a Will?
A will is a legal document that outlines how your assets will be distributed after your death. It also allows you to:
Appoint an executor to manage your estate.
Name guardians for minor children.
Specify funeral arrangements.
Wills go through probate, a court-supervised process that validates the document and ensures your debts are paid before distributing assets to beneficiaries.
Advantages of a Will:
Straightforward to create and update.
Allows for detailed instructions on asset distribution and guardianship.
Suitable for most individuals with simple estates.
Learn more about our Will Drafting Services.
What Is a Living Trust?
A living trust is a legal arrangement where you transfer ownership of assets into a trust during your lifetime. You retain control of the trust as the trustee and can manage the assets as usual. Upon your death, the assets are distributed according to the terms of the trust without going through probate.
Advantages of a Living Trust:
Avoids probate, ensuring a faster and more private distribution of assets.
Provides protection if you become incapacitated, as a successor trustee can manage the trust.
Useful for complex estates or high-value assets.
However, living trusts can be more expensive and time-consuming to establish than wills, and they require ongoing management to ensure assets are properly funded into the trust.
Key Differences Between a Will and a Living Trust
Aspect | Will | Living Trust |
When It Takes Effect | After death | Immediately upon creation |
Probate | Required | Avoided |
Privacy | Becomes public record | Remains private |
Cost | Lower initial cost | Higher initial cost, but saves probate fees |
Incapacity Protection | Not included | Provides protection through a trustee |
Choosing the Right Option for Your Needs
Use a Will if:
Your estate is straightforward and doesn’t involve complex assets.
You need to name guardians for minor children.
Use a Living Trust if:
You want to avoid probate and distribute assets privately.
Your estate includes high-value or multiple properties.
You’re concerned about incapacity and want a seamless transition of asset management.
Many individuals benefit from having both a will and a living trust. For example, a will can cover guardianship and smaller assets, while a living trust manages larger properties or complex investments.
Real-Life Example: Combining Wills and Trusts for a Comprehensive Plan
A Scarborough client with significant real estate holdings and minor children approached us for guidance. We drafted a living trust for their properties to avoid probate and ensure smooth management in case of incapacity. Simultaneously, we created a will to appoint guardians and address smaller personal assets. This dual approach provided peace of mind and comprehensive protection for their family.
Frequently Asked Questions
Q: Do I need both a will and a living trust? A: In many cases, having both is beneficial. A will can address areas not covered by the trust, such as guardianship, while the trust handles high-value assets and avoids probate.
Q: Are living trusts only for wealthy individuals? A: No, living trusts can benefit anyone with assets they want to protect or distribute privately and efficiently.
Q: Can I update a living trust like a will? A: Yes, living trusts are flexible and can be amended during your lifetime to reflect changes in your circumstances.
Visit our Will and Estate Law Services FAQ section for more insights.
How NLCI Helps You Decide
Personalized ConsultationWe assess your financial situation, family dynamics, and goals to recommend the best estate planning tools.
Experienced DraftingOur team creates legally sound wills and trusts that comply with Ontario laws.
Ongoing SupportEstate planning isn’t static. We help you adjust your plan as your circumstances or legal requirements evolve.
Contact Your Scarborough Estate Lawyer Today
Whether you need a will, a living trust, or both, NLCI Your Real Estate Lawyer Professional Corporation is here to provide experienced guidance. Let us help you create a customized estate plan that protects your assets and ensures your legacy.
📧 Email: YOURLAWYER@BELLNET.CA 📞 Phone: (416) 292-4667
Call us today or Contact Us to schedule a consultation.
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