Wills vs. Trusts

A will and a trust are both legal tools that are used to manage and distribute assets, but they have some important differences. Here are the key distinctions between a will and a trust:

1. Purpose and Function:

   • Will: A will is a legal document that outlines how a person's assets and property should be distributed after their death. It allows you to name beneficiaries for your assets, appoint guardians for minor children, and specify your final wishes regarding funeral arrangements, charitable donations, and more.

   • Trust: A trust is a legal arrangement where a person (the grantor or settlor) transfers their assets to a trustee, who manages those assets on behalf of designated beneficiaries. In a Revocable Trust, the grantor or settlor can choose to appoint themselves as trustee in order to maintain full control Trusts can be used to protect and distribute assets during a person's lifetime and after their death. They provide more control and flexibility over how assets are managed and distributed compared to a will.

2. Probate:

   • Will: A will typically goes through a legal process called probate after the person's death. Probate is a court-supervised procedure that validates the will, settles debts, and ensures the assets are distributed according to the deceased's wishes. The probate process can be time-consuming, expensive, and subject to public record.

   • Trust: Trusts, on the other hand, avoid probate for assets placed within the trust. Since the assets are owned by the trust and not the individual, they do not go through probate. This can result in faster and more private distribution of assets, while avoiding probate costs.

3. Privacy:

   • Will: A will is a public document once it goes through probate. This means that its contents become part of the public record, and anyone can access the information contained in the will.

   • Trust: A trust offers more privacy since it generally does not become part of the public record. The terms of a trust and its distribution of assets remain confidential.

4. Control and Flexibility:

   • Will: A will only takes effect upon the death of the person making it. Until that point, it can be modified or revoked as long as the individual is mentally competent.

   • Trust: A trust can be created to take effect during the grantor's lifetime (living trust) or after their death (testamentary trust). A living trust allows the grantor to retain control and management of assets while providing instructions for their management and distribution in the future. Trusts can also provide more control over how and when assets are distributed, such as allowing for staggered distributions or providing for specific conditions.

Let’s have a conversation and determine whether a will or a trust is better fit for you and your family.