When it comes to wills, trusts, & powers of attorney, these three essential legal documents are often lumped into the same category, even though each is extremely distinct in its purposes. If you weren’t sure about what each of these documents was before, here is a brief introduction to each.
- Will – A will is the document that most people think of when wills, trusts, & powers of attorney come to mind. This legal document includes information about how you want your assets to be distributed after you die. It includes who your assets will go to and appoints the executor for your estate.
- Trust – A trust is similar to a will. However, this document allows the executor of your estate to hold onto assets on behalf of your beneficiaries. A trust may outline how and when you want your assets to be distributed to any or all of your beneficiaries and is often used when beneficiaries are very young or incapable of making decisions about how to manage assets.
- Power of Attorney – A power of attorney is a document that is the most different from a trust or a will. This document appoints an individual to act on behalf of another while they are still alive, but they have become incapacitated or unable to act for themselves. The appointed person in the power of attorney document can make decisions relating to the person’s property, finances, health care, and any other situations outlined in the document.
Although wills, trusts, & powers of attorney are different, they are all equally important documents. If you are unsure whether you need a will, trust, or power of attorney, consult with an attorney who can help you make this decision according to your personal circumstances and situation.
Ned help dealing with wills, trusts, & powers of attorney in Toronto ON? Contact us at Grinhaus Law Firm. We offer high-quality legal services, flat-rate pricing, and free consultations. Give us a call today!