A will and a trust are two of the most commonly used estate planning tools, but they are very different from each other. A will is a legal document that outlines your wishes for how your assets, property, and other belongings should be distributed upon your death. A trust, on the other hand, is a legal arrangement that involves a separate legal entity, which holds assets or property for the benefit of another person or multiple persons. Here are some of the key differences between the two:
- Probate: When you pass away, your will must go through probate court before your assets can be distributed. Probate is a court-supervised process that can be time-consuming and expensive. A trust, on the other hand, typically avoids probate and allows for a quicker and more private distribution of assets.
- Control: A will allows you to control how your assets will be distributed, but you have no control over what happens to them after they are distributed. With a trust, you can control how your assets are distributed and in some cases, even how they are used after your death.
- Privacy: Wills are public record and can be accessed by anyone, whereas trusts are private and are not required to be made public.
- Incapacity: A will only takes effect upon your death, meaning it does not address what will happen if you become incapacitated. Conversely, a trust can provide for the management of your assets in the event that you become incapacitated.
Ultimately, whether a will or a trust is the best estate planning tool for you will depend on your individual circumstances and goals. It's important to consult with an experienced estate planning attorney to help determine the best course of action.
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