What is the difference between a will and a trust, and which one should I choose?

A will and a trust are both estate planning tools that allow the owner of the assets to designate how their property is distributed upon their death.

A will is a legal document that outlines the distribution of a person's assets after their death. It is a public document that goes through the probate process, which is the legal process for distributing assets after death. The will typically names an executor, who is responsible for ensuring that the assets are properly distributed to the beneficiaries named in the will. A will also allows you to name guardians for any minor children.

A trust, on the other hand, is a legal arrangement where a person transfers their assets to a trustee, who manages and distributes those assets on behalf of the beneficiaries named in the trust. A trust can be revocable or irrevocable, and can be set up to take effect during your lifetime or after your death. A revocable trust can be changed or revoked by the person who created it, whereas an irrevocable trust cannot be changed. A trust can be used to minimize estate taxes, avoid probate, and provide for the management of assets if the owner becomes incapacitated.

Which one you should choose depends on your individual circumstances and goals. A will may be appropriate for individuals with a relatively simple estate or those who want to keep their affairs public. A trust may be preferable if you have a large estate or complex assets, want to avoid probate, or want to control the distribution of your assets over time.

There may also be certain limitations or exceptions to consider. For example, while a trust can help minimize estate taxes, it can also be more expensive to set up and maintain compared to a will. Additionally, if you have assets in multiple states, you may need to have a separate trust for each state, which can be costly and time-consuming.

If you are considering a will or trust, it is recommended that you consult with an experienced estate planning attorney who can help you evaluate your options based on your specific circumstances and goals.