Creating an estate plan prior to your death proves to be highly beneficial. One of its biggest benefits is giving you the ability to plan for your heirs. Generally, you can do this with the formulation of either a will or a trust. There's a distinction between the two and you should be aware that there are cases when a trust is favored over a will and vice versa.

A will is usually indicated if you want to name your heirs and want to specify the amount of share each should receive. Some estate owners have their own favorites in their family that prompts them to vary the shares that they want their heirs to get. In some cases, the will is used to disinherit or omit any heirs. In some, it can be a vehicle to provide special gifts to their favored heirs like their nieces and nephews, grandchildren or even their chosen charities.

A will is indicated if the estate is only small enough that it won't be required to undergo probate. It is also appropriate in cases when it is safe to leave the estate through beneficiary arrangements or joint tenancy. Furthermore, a will is indicated if there are no hefty death taxation liabilities, if there is no need to hold or control the payouts to the heirs and mental incapacitation of the estate owner isn't going to pose any financial and legal transaction woes.

On the other hand, a trust is indicated if the estate is huge and cannot be safely transferred via the beneficiary and joint tenancy arrangements. The amount of the estate talked about here will usually exceed a hundred thousand dollars. A trust is chosen if it seems that there'll be significant death taxation liabilities and if probate is something that is primarily wished to be avoided.

The best thing about a trust is that it gives you the control as to what age your heirs will get their shares and as to what conditions. This is ideal especially if the children are very young or if they are already adults yet have been observed to have reckless spending habits. Through a trust, you can make provisions for your mentally and physically disabled heirs and assure those who are studying that you can pay for their college education, too.

Above are just a brief overview to let you understand the difference between a will and a trust. Estate planning is an important part of your life. If you want to assure that your family will be in safer hands and will not have to undertake the hassles of you dying intestate (dying without a will or trust), then it's time to craft your estate plan with the help of a professional Austin Estate Planning. Austin Estate Planning is manned by very competent and highly-skilled estate planners who will do a great job of formulating a solid will or trust that befits your situation.