What is the difference between a will and a living trust, and which one is right for me?

A will is a legal document that directs how an individual's property will be distributed upon their death. In a will, the testator (the person who makes the will) typically appoints an executor who is responsible for distributing the assets to the beneficiaries named in the will. A will can also appoint a guardian for minor children if the parents of the children pass away. A will only goes into effect after the death of the individual who made it.

A living trust is a legal document that is created during an individual's lifetime, which can be changed or revoked by the individual until their death. With a living trust, the individual (referred to as the grantor) typically transfers their assets into the trust, and designates a trustee who will be responsible for managing and distributing the trust assets to the beneficiaries named in the trust.

One of the primary differences between a will and a living trust is that a will goes through probate, which is a court process that distributes an individual's assets. Probate can be costly and time-consuming, and may result in a loss of privacy. Additionally, assets subject to probate are generally available to creditors who can make claims against the deceased's estate, which can further reduce the assets available for distribution to beneficiaries. A living trust avoids probate and allows for more seamless administration of an individual's assets upon their death.

Which legal document is right for an individual depends on their individual circumstances. Factors to consider include the size and complexity of an individual's estate, the potential tax implications of different distribution strategies, and the thresholds for probate in the relevant jurisdiction. An experienced attorney can help determine which approach is best suited to an individual's needs.

It is important to keep in mind that the process of creating a living trust can be complex, and typically requires an attorney to advise on the creation of the trust and appropriate transfer of assets. Additionally, a living trust can be more costly to establish than a will, due to the additional legal fees and ongoing administration costs.