Wills vs. Trusts: Which One is Right for You?

Many people are unsure about whether they need a will or a trust—or both! This post breaks down If you’re just starting to explore estate planning, one of the biggest questions you may have is: Do I need a will or a trust—or both? The answer depends on your unique situation, but understanding the differences between the two can help you make an informed decision that protects both your assets and your loved ones.

What is a Will?

A will is a legal document that outlines how your assets should be distributed upon your death. It allows you to name an executor to carry out your wishes and appoint guardians for your minor children. Wills are typically subject to probate, which is a court-supervised process that validates the document and oversees the distribution of your estate.

What is a Trust?

A trust is a legal arrangement that holds assets on behalf of a beneficiary. Trusts can be set up during your lifetime (living trusts) or after death (testamentary trusts). A revocable living trust is a common tool used to manage assets and avoid probate. The trust document names a trustee—someone who manages the assets for the benefit of your heirs.

Key Differences Between Wills and Trusts

• Probate: Wills go through probate; trusts do not. Avoiding probate can save time, money, and maintain privacy.
• Privacy: A will becomes public record once it enters probate court, whereas a trust remains private.
• Timing: A will only takes effect after death. A trust can manage assets during your lifetime and after death.
• Control: Trusts offer more flexibility in managing how and when assets are distributed (e.g., over time or under certain conditions).
• Cost & Complexity: Wills are generally less expensive to create. Trusts require more time and legal help to set up but can reduce costs and complications in the long run.

How Each Protects Your Assets & Beneficiaries

• Wills ensure your assets are distributed according to your wishes, but probate can delay this process.
• Trusts can provide immediate access to assets for your beneficiaries, especially in emergencies, and protect against court involvement.

When Should You Have Both?

In many cases, having both a will and a trust provides comprehensive protection. For example:

• A trust manages major assets and avoids probate.
• A will covers assets not included in the trust and names guardians for minor children. This dual approach ensures that all your bases are covered.

Setting Up a Will or Trust

1. Assess Your Needs: Do you have young children? Significant assets? Business interests? Health concerns?
2. Meet with an Estate Planning Attorney: They can help you determine the right combination of documents.
3. Update Your Beneficiaries: Ensure accounts align with your estate plan.
4. Communicate Your Wishes: Let your loved ones know where documents are and what your wishes are.

Don’t Wait to Decide

Too often, people postpone these decisions until it’s too late. Death and incapacity don’t come with a warning, and having these documents in place ensures your voice is heard when it matters most.