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

A will is a legal document that outlines how your assets will be distributed after your death. It is executed by an individual, usually with the assistance of an attorney, and requires signatures of witnesses to be considered valid. The will only takes effect after the individual who created it passes away.

A living trust, on the other hand, is a legal document that outlines how your assets will be managed during your lifetime and after your death. The trust is created during your lifetime and can be amended or revoked at any time. You can transfer assets to the trust during your lifetime, and the trust will continue even after your death. A trustee is named to manage the assets in the trust for the benefit of the beneficiaries.

There are some key differences between a will and a living trust. One of the primary differences is that the assets in a living trust do not go through probate court. Probate is the court-supervised process of distributing a deceased person's assets according to their will or according to state law if there is no will. Probate can often be a lengthy and expensive process, and assets that go through probate become a matter of public record. By using a living trust, you can avoid the probate process altogether.

Another difference is that a trust allows you to provide more detailed instructions for how your assets should be managed and distributed. With a will, you are limited to distributing assets outright or in a few select ways. With a trust, you can create more complex distribution plans, such as providing for minor children or ensuring that assets are distributed in a staggered fashion over time.

Which one you should use for your estate plan depends on a variety of factors, including the size and complexity of your estate, your personal preferences, and your goals. It is important to speak with an experienced estate planning attorney to discuss your options and determine which approach is best for you.

It is also important to note that while a living trust can help you avoid probate, it may not be the best choice for everyone. For example, some individuals may have estate tax concerns that can be better addressed using other estate planning tools. Additionally, trusts can be more complicated to create and manage than wills, and may require ongoing expenses, such as fees for a trustee or a professional trustee company.

In summary, a will is a legal document that outlines how your assets will be distributed after your death, whereas a living trust is a legal document that outlines how your assets will be managed during your lifetime and after your death. Whether you should use a will, a living trust, or a combination of both depends on your unique situation and personal preferences. It is important to consult with an experienced estate planning attorney to determine what is best for you.