Will vs. Trust — What’s the Better Option?

Everyone has heard of a Will and Trust, but few laymen know the differences between the two. In fact, it is not uncommon for people to believe that they are basically the same legal instrument. But while they are both crucial to estate planning, and can complement each other for optimal effect, they serve very different purposes.

One key distinction between a Will and a Trust is that the former goes into effect only upon your death, while the latter takes effect as soon as you create it. That’s because a Will is specifically designed to direct who will receive your assets when you pass away, and will identify and appoint whoever you choose to be your legal representative, also known as an executor, in carrying out these wishes.

By contrast, a Trust can be utilized to distribute your property at any time: before death, upon death, or at some point afterwards. A Trust appoints an individual or entity called a “Trustee” that holds legal title to your property for another person, called a “beneficiary”, which could a loved one, a charitable foundation, or any other person or entity you wish to bequeath your assets to. There are generally two types of beneficiaries in a Trust: ones that receives income via the Trust during their lives, and ones that receive whatever remains upon the death of the first beneficiary.

One main difference between a Will and a Trust is what happens when you pass away. Wills invariably pass through probate, a court-supervised process typically lasting three months or more, by which the Will is validated and the assets get distributed as directed. By contrast, the assets in a Trust do not go through the probate process, and no court involvement is required in order to pass on the assets.

Given these distinctions, there are many pros and cons to using either a Will or Trust to plan your estate. If you wish to name a guardian for your non-adult children, or to specify funeral arrangements, you can do so via a Will. By contrast, planning for disability or to help save taxes is best done through a Trust.

These are just some of the more crucial details pertaining to Wills and Trusts. It is very common for individuals to neglect establishing these critical estate planning documents, given the complexities and nuances between them (not to mention the inherent difficult of thinking about end-of-life matters). That is why employing an Estate Attorney is indispensable to ensuring that your legacy is safeguarded and your loved ones are looked after. At Jurado & Farshchian P.L., we work hard to make estate planning simple for you, taking the time to understand your circumstances and goals so as to advise on the best documents and plans accordingly.