Will vs Trust

Wills and trusts are some of the most common legal means employed in estate planning, but do you know the difference between a will vs trust? Both help for a good cause to manage and distribute your assets, but they do so very differently. In considering options for estate planning, it’s very important that you understand the critical differences between a will vs trust to make an informed decision on which best suits your needs.

What is a Will?

A will is a legal document in which you describe how you wish your estate to be distributed after your death. It allows you, among other things, to appoint beneficiaries of your assets, plan for the guardians of minor children, and appoint one or more people to act as executors of your estate. A will does not take effect until it has been through the probate process, that is, until the will has been proven in court and the property is distributed, more or less under the supervision of the court.

What is a Trust?

A trust is a legal arrangement whereby you give your assets to a trustee to manage for the benefit of one or more beneficiaries you name. Trusts can be either revocable-living trusts that are changeable during your lifetime-or irrevocable-generally unchangeable once created. Unlike a will, a trust goes into immediate effect and continues beyond the lifetime of the person whose estate it is. Will vs. Trust: Key

Differences Between Will vs Trust

The major difference between a will vs trust is how and when they work. One of the big differences between a will and a trust is how and when they work: a will is a simple document that serves only upon your death, whereas a trust can be effective during your lifetime and beyond. This basic difference gives way to some key differences in how these tools work for your estate plan.

Process of Probate

There are some big differences between the two, one of which involves the process of probate. Wills are required to go through the probate process, which can be time-consuming and costly. Trusts, generally speaking, completely avoid any probate, allowing for the assets to be transferred quicker and with more privacy.

Privacy

Where considering a will versus trust is concerned, perhaps one important thing to know and understand is privacy. Wills become part of the public record once they go into probate, which means that anyone can find out about your personal estate information. Trusts remain totally private-which would keep all of your financial affairs and your named beneficiaries private.

Control Over Asset Distribution

Trusts allow a lot more control with respect to how and when your assets are distributed. In the case of a trust, conditions may be placed on asset distribution such as upon reaching a certain age or meeting some general milestone. Wills provide for immediate distribution upon death without the flexibility that is seen here.?

Effectiveness During Incapacity

Another critical argument in the will vs trust debate pertains to a will providing protection if you were to become incapacitated. A well-established trust enables the smooth proceedings of the management of your assets beyond the point where you are competent to make decisions about them. A will plays its role after one dies; therefore, it offers no protection in that particular case.

4 Benefits of a Will

Following are some reasons that work in the benefit of a will when considering the options from will vs trust.

  1. Convenience: Most wills are easier and cheaper to establish compared to trusts.
  2. Flexibility: During the course of your lifetime, as situations change, you can amend a will rather easily.
  3. Nomination of Guardians: Wills allow parents to name guardians for minor children.
  4. Naming Executor/Personal Representative: You are able to designate who will be in charge of your estate as it goes through probate.

4 Benefits of a Trust

In the will vs trust comparison, there are some unique advantages to trusts:

  1. Probate Avoidance: Apart from the time consumed, assets in a trust will bypass the probate process and its associated costs. In a trust, such details remain private, which is not true in the case of dealing with a will.
  2. Incapacity Planning: You can also provide successors to take up the responsibility of managing your assets in case you get incapacitated.
  3. Larger or More Complicated Estate: If your estate is large or sophisticated, trusts have the potential for like-for-like planning.
  4. Possible Tax Benefits: Making use of specific types of trusts might save you from paying estate taxes.

Will vs Trust: Which One Suits You?

Which to choose between the will and the trust depends on your individual situation, the size of the estate, and your personal preference. In case you have a pretty simple estate and do not mind probate, then a will could be sufficient. However, if you wish to have privacy for your heirs, to avoid probate, or maybe you possess an operational estate, the trust might be the better thing.
These options are not mutually exclusive. For example, many estate plans today include both a will and a trust, though they serve different purposes in the overall strategy.

Finding Professional Advice for Estate Planning

Estate planning and the decisions on wills versus trusts can be overwhelming sometimes. The provided overview should give you an idea of what you are getting into, but it’s always best to consult with an experienced estate planning attorney. We have professionals here at Antanavage Farbiarz Attorneys at Law who can help you make sense of all the details that pertain to a will versus trust in regard to your situation.

An estate planning attorney will be in a position to evaluate any specific needs you may have, explain how individual state laws may bear on your decisions, navigate the differences between a will vs trust, and even can help you create a plan that may include both a will and a trust. If you consult an expert, you can be assured your estate plan actually reflects your personal wishes and most safely and effectively protects your assets and family.
Don’t leave your legacy to chance.

Call Antanavage Farbiarz now to schedule a consultation, and take the first step in cementing your family’s future with the estate planning tools you need. Reach out today to learn how our seasoned attorneys can assist you in your unique situation. Our family is here for your family – give us a call at (610) 562-2000 or click here to schedule a consultation.

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