What is the difference between a will and a living trust and which one should I choose for my estate plan?

A will is a legal document that outlines how a person's assets and property should be distributed after their death. It is a testamentary document that becomes effective only after the person's death. A living trust, on the other hand, is a legal arrangement where a person (the grantor) transfers assets and property to a trust during their lifetime, which is managed by a trustee for the benefit of themselves (while they are alive) and/or their named beneficiaries (after their death).

One of the biggest differences between a will and a living trust is the probate process. Probate is a legal process through which a court verifies the validity of the will and ensures that the deceased person's assets are distributed according to their wishes. Probate can be a long and expensive process, which can tie up assets for months or even years. A living trust, however, can avoid probate entirely because the trust owns the assets rather than the individual.

Another major difference is that a will only applies to assets that are owned by the individual at the time of their death, while a living trust can apply to assets that are titled in the name of the trust. This means that a living trust can also provide for the distribution of assets while the grantor is still alive in the event they become incapacitated and need someone else to manage their affairs.

Ultimately, whether to choose a will or a living trust depends on individual circumstances and personal preference. Factors that may influence this decision include the size of the estate, the complexity of the distribution plan, and the desire for privacy. It is advisable to speak with a licensed attorney who can provide guidance and help determine the best course of action for each individual situation.

It is important to note that while a living trust may avoid probate, it may not completely eliminate estate taxes or other legal issues. It is also important to regularly review and update estate planning documents as circumstances or desires change to ensure the plan aligns with the individual's goals and objectives.