Law Review: What's the difference between a will and a trust? - KTIV News 4 Sioux City IA: News, Weather and Sports

Law Review: What's the difference between a will and a trust?

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SIOUX CITY (KTIV) - What is the difference between a will and a trust?

Jeana Goosmann, Goosmann Law Firm, says "A will is a written document (signed and witnessed), which states what will happen to your property at time of death. It's subject to amendment at any time during life. A trust is created during your lifetime. It's a three-party agreement. There's the trustor, who creates the trust. There's the trustee, who manages the trust. And, there's the beneficiary, who receives the benefits. A trust manages property during your lifetime, and after death."

Matt Breen asked, "Should have an estate plan?" Jeana Goosmann, Goosmann Law Firm, says "Yes. It's a good way to plan what will happen to your assets and estate for the future. 30% to 40% don't have any estate planning. All people of all ages should have one. It helps ensure your property passes on to those you care about."

Matt Breen asked, "How does someone choose which is right for them, a will vs. trust?" Jeana Goosmann, Goosmann Law Firm, says "Each has their pros and cons. A trust is a good to use if you will actively manage your estate plan. But, it can be more expensive. It does give you more options, though. A will is the way to go if your state's probate is not a complex process. Probate is the proof of validity of the will. A will can allow property to be passed on to heirs."

Matt Breen asked, "You mentioned that all people of all ages should have an estate plan. Explain to our viewers what you mean by that?" Jeana Goosmann, Goosmann Law Firm, says "It doesn't matter how wealthy, or young, or old. Estate planning is a balance of financial and non-financial concerns. It drives down cost and can save on taxes. It promotes efficiency and privacy. It also provides for those you care about. It eliminates an emotional process for loved ones. But, it can be drawn-out in the court process.

Matt Breen asked, "How does someone start their estate plan?" Jeana Goosmann, Goosmann Law Firm, "Review your financial position. Ask yourself where you want it to go. How do you want your children/family cared for? Then, talk to loved ones. What do they foresee or would like for the future. Determine your goals/plans/wishes. Outline what you want your estate plan to do. And, contact an attorney."

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