Should I Choose a Will or a Living Trust?

One of the most frequent questions that I am asked is whether it is better to have a will or a living trust.  What are the differences between them and which one is right for you?

While both a will and a living trust are tools for distributing your assets after you pass away, they function differently and have key differences that may affect how your estate is managed.

A will is a legal document that specifies how your assets will be distributed after your death.  It also designates a personal representative (sometimes called an executor) to manage your estate.  If you have minor children, a will should also nominate a guardian for them.  After you pass away, a will must go through probate, which is the court-supervised process that can be time-consuming and add expenses.   Additionally, probate is a public process, meaning anyone can access your will, estate inventory, and other documents once they are filed with the courts.

A living trust can serve as a substitute for a will.  A trust is a legal arrangement in which you transfer assets to a trustee, who manages those assets for the benefit of your beneficiaries.  Often you will serve as your own trustee, and you will also be the primary beneficiary during your lifetime.  One of the key advantages of a trust is that it provides a management structure for your assets during your lifetime, so that your selected successor trustee can manage the trust for you, if you are no longer able to manage your financial affairs yourself.  After death, the assets held in a trust can pass to your beneficiaries without probate, meaning your estate can be distributed quickly and privately. Trusts can also offer more control over how assets are managed and distributed to your beneficiaries, and they can address things like disability planning or care for minor children.

Which Option Is Best for You?

A will is usually a simpler document and may be a good option for smaller estates or situations where distributions are expected to be straightforward.  A trust, though more complex, provides privacy, avoids probate, and offers greater control over your assets during life and after death.

To make an informed decision about your estate plan, it is important to consult with a knowledgeable estate planning attorney who can evaluate your specific needs and guide you in choosing the best option for your situation.