Will or Trust: What Do I Need? A Simple Estate Planning Guide

When it comes to planning for the future, one big question is: Should I have a will, a trust, or both? Let’s break down what each does, how they’re different, and which might be right for you

What is a Will?

A will is a legal document that spells out what you want to happen with your stuff like your house, money, or personal items after you die. You can also use a will to name a guardian for your minor children and pick someone (an executor) to be in charge of distributing everything you leave behind to your loved ones.

Pros:

●      Easy and affordable to set up

●      Lets you name guardians for kids

●      Good for simple asset distribution

Cons:

●      Goes through probate (a court process that can be costly, slow and public)

●      Becomes public record

●      Only takes effect after you die

●      Doesn’t help if you become incapacitated

What is a Trust?

A trust is a legal agreement where you move your assets (like your house or investments) into a trust, managed by a trustee. The trustee follows your instructions on how and when to give stuff to your chosen beneficiaries. Trusts can work while you’re alive and after you pass away.  With a “revocable trust” you get to be the trustee while you are alive so you still retain control over everything.

Pros:

o   Skips court, so things get handled faster and privately

o   A trusted loved one will easily be able to manage your assets (such as pay your bills) if you become incapacitated

o   Lets you control when and how your assets are given out (for example, giving money to kids when they turn 25, instead of the default age of 18)

o   Can help reduce estate taxes (with certain types of trusts)

Cons:

o   Costs more and is a bit more complicated to set up

o   You have to move assets into the trust for it to work

o   Doesn’t let you name guardians for minor children

Which One Should I Choose?

A will might be enough if:

o   Your estate is small and simple

o   You just want to leave things directly to a few people

o   You need to name guardians for your kids

A trust might be better if:

o   You want to avoid probate and keep things private

o   You have property in multiple states

o   You want to control how and when your heirs get their inheritance

o   You want to plan for possible incapacity

o   You have a large or complicated estate (such as second marriage with kids from a previous marriage, multiple accounts, children with special needs or minors)

Many people use both a trust for managing and distributing assets smoothly AND a will for guardianship and anything not in the trust.

Bottom Line

Both wills and trusts are useful tools for estate planning. The best choice depends on your unique needs, your family, and your goals. If you’re not sure, talking to an estate planning attorney can help you figure out the right plan for you and your loved ones.

Planning ahead can save your family time, money, and stress and make sure your wishes are honored.

Sammartino & Sultan Law Group is here to help. Our experienced attorneys are here to guide families through every step with compassion and expertise.

Contact us to schedule a free consultation.

About the Author

Leslie has been practicing law since 2009 and is the host of the estate planning podcast 'Legacy Purse'. She has a long history of representing family members struggling to inherit property and/or wealth from deceased family members through the Probate Courts. Knowing how time-consuming and expensive the probate process is, Leslie takes great pride in helping her clients learn how to plan and protect their families during their lives so they can avoid the probate court process and save their loved ones that additional grief (and expense).