Do I Need A Will Or A Trust?

Great question! Both wills and trusts are tools used in estate planning, but they serve different purposes and function in different ways. Below are some general differences between the two legal structures.

Will:

• Purpose: A legal document that outlines your wishes regarding the distribution of your assets and the care of any minor children upon your death.
• Effective Date: Takes effect only after you pass away.
• Probate: Typically goes through probate, a court-supervised process that can be time-consuming and costly.
• Public Record: Once filed with the court, it becomes part of the public record.
• Flexibility: Allows you to name guardians for your minor children and specify funeral arrangements.

Trust:

• Purpose: A fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of beneficiaries.
• Effective Date: Can be effective during your lifetime (living trust) or upon your death (testamentary trust).
• Probate: Generally avoids probate, which can expedite the distribution process and reduce costs.
• Privacy: Usually not part of the public record, offering more privacy.
• Flexibility: Can provide detailed instructions for how and when assets are distributed to beneficiaries, including conditional distributions (e.g., after reaching a certain age).

Both wills and trusts have their advantages and can be used together as part of a comprehensive estate plan. For more detailed information, please see our articles on Wills and Trusts.