Trust vs Will – What’s the Difference?

The main difference between a will and a trust is when they take effect and how they distribute assets.

A will is a legal document that takes effect after your death and outlines how you want your assets to be distributed. It also names an executor to manage your estate and carry out your wishes. A will goes through the probate process, which is the legal process by which your assets are distributed to your beneficiaries after your debts are paid.

A trust, on the other hand, is a legal entity that can be established during your lifetime or after your death. You transfer assets into the trust, and they are managed by a trustee of your choosing. The trustee distributes the assets according to the terms of the trust, which you specify in the trust agreement. A trust can take effect during your lifetime or after your death, depending on how it’s structured.

One of the main benefits of a trust is that it can help you avoid probate. Assets held in a trust are not subject to the probate process, which can be time-consuming and costly. Additionally, a trust can offer more control and flexibility over how your assets are distributed. For example, you can specify that assets be distributed to beneficiaries over time, rather than in a lump sum.

Another key difference between a will and a trust is privacy. A will is a public document that is filed with the court and can be accessed by anyone. A trust, on the other hand, is a private document that is not filed with the court and is only accessible to those named in the trust agreement.

Choosing between a will and a trust depends on your individual circumstances and goals. If you have a relatively simple estate and don’t need a lot of flexibility in how your assets are distributed, a will may be sufficient. However, if you have a larger or more complex estate, or if you want more control over how your assets are distributed, a trust may be a better option. It’s important to work with an experienced estate planning attorney to determine the best approach for your specific situation.

Click here for additional info on the different types of Wills and Trusts.