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

A will and a living trust are two common estate planning tools that individuals use to distribute their assets after their death. The main difference between a will and a living trust is that a will goes into effect after the individual's death, while a living trust goes into effect during the individual's lifetime and can continue after their death.

A will is a legal document that outlines how an individual's assets will be distributed after their death. It can also name guardians for minor children, designate an executor to manage the estate, and specify funeral arrangements. A will must go through probate, which is a court-supervised process that validates the will and distributes the assets to the beneficiaries. This process can be time-consuming and costly, and the details of the will become public record.

On the other hand, a living trust is a legal document that allows an individual to transfer their assets into a trust during their lifetime. The individual can be both the trustee and the beneficiary of the trust, providing them with control over the assets while they are alive. After their death, the assets in the trust are distributed to the designated beneficiaries without going through probate. This can save time and money, and provide greater privacy as the details of the trust do not become public record.

The decision between a will and a living trust ultimately depends on an individual's specific circumstances and preferences. If they have a complex estate or assets in multiple states, a living trust may be a better option to avoid the costs and complexities of probate. If their estate is relatively simple, a will may be sufficient. It is important to consult with a licensed attorney who specializes in estate planning to determine which option is best for the individual's situation.

It is also important to note that a living trust does not replace the need for a will. A pour-over will should be created in conjunction with a living trust to ensure that any assets not transferred into the trust during the individual's lifetime are still distributed according to their wishes after their death. Again, it is crucial to consult with a licensed attorney to ensure all legal requirements are met and to address any potential limitations or exceptions.