Will vs. Trust: What’s Right for You?
If something happened to you tomorrow would your loved ones know what to do? Wills and trusts aren’t just legal documents they are your voice when you’re no longer here. Estate planning is about peace of mind. Many people wonder whether they need a will, a trust, or both. Understanding the potential benefits and drawbacks of each can help you make an informed choice that truly reflects your wishes and protects your loved ones.
A will is often the simplest and most familiar estate planning tool. It sets out who should receive your property and can appoint guardians for minor children. Wills are relatively inexpensive to prepare and easy to update as life changes. However, a will only takes effect after death and must go through probate. Probate is a court-supervised process to validate the document and oversee distribution. Probate can be time-consuming, public, and costly, depending on the size and complexity of the estate. For families who value privacy or want to avoid court delays, probate may be a major drawback.
A trust, on the other hand, offers greater control and flexibility during life and after death. There are many types of trusts. Some are used to avoid probate, others to address tax issues; still others to shelter assets. In general, trusts also allow you to set conditions such as delaying distributions until beneficiaries reach a certain age or using funds only for education or health expenses.
Perhaps the simplest trust to use to avoid probate is the revocable living trust. The Trust allows you to continue to manage the assets as the Trustee of the trust. You can change the trust assets, terms and beneficiaries as often as you would like. If you become incapacitated, a successor trustee can step in without court intervention. Upon death, trust assets can be distributed quickly and privately to your beneficiaries, without probate.
However, trusts do require more effort up front. They are typically more expensive to establish and must be properly “funded,” meaning assets are retitled in the name of the trust. If this step is missed, those assets may still go through probate. For smaller estates or individuals with straightforward wishes, a simple will may be perfectly sufficient.
Ultimately, the best choice depends on your goals, family dynamics, and financial situation. Many people benefit from having both a will to handle any assets outside the trust and a trust to manage and protect the rest. Whether you choose a will, trust or both, these tools help ensure your assets are distributed according to your wishes and your legacy is preserved. To discuss what is the right choice for you, please contact Barbara M. Martin, Esq.
Barbara M. Martin, Esq.
bmartin@beattielaw.com
(201) 799-2133
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