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Wills in Central Arkansas

What's the Difference Between A 

Will and A Trust?

Wills and trusts vary greatly in complexity. A will can be general and sweeping or it can be highly detailed. When you realize your will may serve as a final message to your loved ones, you may feel a responsibility to put careful thought into it. Yes, your family can read letters or poems written by you, but a will is symbolic in its sense of finality. When you think of it this way, you realize how important it is to do it well.


Everyone has heard the terms "will" and "trust," but not everyone knows the differences between the two. Here at Howard Law Firm in Benton, Arkansas, Lori D. Howard is here to help you find the best solution to your needs. Both are useful estate planning devices that serve different purposes, and both can work together to create a complete estate plan.


One main difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as you create it. A will is a document that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. By contrast, a trust can be used to begin distributing property before death, at death, or afterwards. A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a "trustee," holds legal title to property for another person, called a "beneficiary." A trust usually has two types of beneficiaries -- one set that receives income from the trust during their lives and another set that receives whatever is left over after the first set of beneficiaries dies.


A will covers any property that is in your name when you die. It does not cover property held in joint tenancy or in a trust. A trust, on the other hand, covers only property that has been transferred to the trust. In order for property to be included in a trust, it must be put in the name of the trust either when created or at some time before or upon the death of the person creating the trust.


Another difference between a will and a trust is that a will passes through probate. That means a court may oversee the administration of the will and ensures the will is valid and the property gets distributed the way the deceased wanted. A trust passes outside of probate, so a court does not need to oversee the process, which can save time and money. Unlike a will, which becomes part of the public record, a trust can remain private.


Wills and trusts each have their advantages and disadvantages.  Your attorney can tell you how best to use a will and a trust in your estate plan.

Power of Attorney

in Central Arkansas

What Is A Power of Attorney?

Simply put, a power of attorney (POA) is a legal document giving one person (an agent) the power to act for another person (the principal). The agent can have broad legal authority or limited authority to make legal decisions about the principal's property, finances or medical care. The power of attorney is frequently used in the event of a principal's illness or disability, or when the principal can't be present to sign necessary legal documents for financial transactions.

Types of Power of Attorney

A power of attorney should be considered when planning for the future. There are different types of POAs that fall under either a general power of attorney or limited power of attorney.  A POA can take effect immediately or upon your disability or incapacity. 


A general power of attorney acts on behalf of the principal in any and all matters, as allowed by the state. The agent under a general POA agreement may be authorized to take care of issues such as handling bank accounts, signing checks, selling property and assets like stocks, filing taxes, etc.


A limited power of attorney gives the agent the power to act on behalf of the principal in specific matters or events and can also be time sensitive. The limited POA may explicitly state that the agent is only allowed to manage the principal's retirement accounts.


These can take effect immediately or only upon your incapacity or disability, depending on your wishes. 


A durable healthcare power of attorney allows your agent to care for your medical needs even when you are not able to do so on your own, due to your incapacity or other issues that may arise.

In Need of An Attorney to Help Assist You With A Will or Power of Attorney?

Contact Lori Howard today for your free 30-minute phone consultation!

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