Wills & Trusts

Wills and trusts are two important estate planning tools that can help individuals and families secure their assets and ensure that their wishes are honored after they pass away. While both wills and trusts serve similar purposes, they differ in several important ways.

A will is a legal document that outlines how a person’s assets will be distributed after their death. A will is a public document that must go through probate, which is the legal process of distributing a person’s assets after death. During probate, the will is reviewed by a court, and the assets are distributed according to the instructions outlined in the will. Wills are relatively simple to create and can be an effective way to distribute assets, but they can also be time-consuming and expensive to enforce.

A trust, on the other hand, is a legal arrangement that allows a person to place their assets in the control of a trustee, who manages the assets for the benefit of the beneficiaries. Trusts can be revocable, meaning they can be altered or revoked during the grantor’s lifetime, or irrevocable, meaning they cannot be altered or revoked after they are created. Trusts are private documents that do not go through probate and are often used to avoid probate, reduce estate taxes, or protect assets from creditors.

One of the key differences between a will and a trust is how assets are distributed. With a will, assets are distributed through the probate process after the person’s death. With a trust, assets are transferred to the beneficiaries while the grantor is still alive or immediately after the grantor’s death, without the need for probate. This can make the distribution of assets quicker and less expensive.

Another difference between a will and a trust is the level of control they provide. With a will, the person’s assets are distributed according to the instructions outlined in the will, but the person has no control over how the assets are managed after their death. With a trust, the grantor can specify how the assets are managed and can even place restrictions on how the assets can be used by the beneficiaries.

Finally, a will is a public document, while a trust is a private document. This means that information about the distribution of assets in a will is available to the public, while information about the distribution of assets in a trust is kept private.

The choice between a will and a trust will depend on a person’s individual circumstances, including their assets, their family situation, and their goals for their estate. An experienced estate planning attorney can help you navigate the complex world of estate planning and create a plan that suits your unique needs.