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Trusts, Gifts and Estates term paper (ANY TOPIC!!) - Essay Example
Finance & Accounting
Pages 10 (2510 words)
Revocable Living Trust vs. Last Will and Testament It is imperative for most people to have some form of estate planning or estate administration in place because it provides security for them and their families. It is one of the important decisions that transfer wealth and assets to others such as family members, relatives, friends and charities…
This results to the preservation of a harmonious familial relationship and the achievement of several financial benefits such as the creation of cash reserves and the after-tax income available. According to Brown and Myers (2008), it is important to underscore that the primary objective of all family estate planning is to provide psychological and financial security by obtaining “the maximum benefits of principal and income for the family and to pass on the family property intact (i.e. without losses)” (23). The last will and testament is an excellent example of estate planning and administration. There is also the case the revocable living trust. Both of these are popular choices for people seeking to manage and administer their assets and properties. This paper will explore why the revocable living trust can prove to be more beneficial for everyone than the last will and testament. Background The last will and testament or more generally known as the will is a legal document that provides the disposition of assets and properties. Simply put, in case of death, the ownership of a property is transferred according to the terms of the will of the deceased, the terms that document his desires particularly in the distribution of his estate and assets (Wardle and Nolan, 1042). ...
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