Will vs. Trust: Which do I need?

When planning for the future, there seems to be an ongoing battle between two important tools: wills and trusts. Both documents allow you to determine what happens to your things after you pass away, but they work in different ways.
A will is a written document that explains who should get your belongings when you die. It can also name a guardian for young children. A will only takes effect after you pass away. But there’s something important to know: a will must go through a legal process called probate. Probate can take months, sometimes longer. It can also cost money. During probate, your will becomes part of the public record, which means people can see what you owned and who you left it to. A will is simple and useful, but it does not avoid probate.
A trust is also a written document that explains who should get your belongings when you die. However, a trust becomes the actual owner of your things. Ownership can be transferred to the trust while you are living by changing the title of your things  to be the trust (e.g., home, bank accounts, or investments). Alternatively, you can direct the ownership change to the trust upon your death via a marital property agreement or beneficiary designation. Because the trust is the owner, there is no need for the court to be involved through probate. When you pass away, the person you choose to manage the trust (your successor trustee) can immediately follow your instructions.
How do they compare?

• Cost: A will usually costs less to set up. A trust costs more upfront, but may save money later.
• Privacy: A will becomes public in probate. A trust stays private.
• Speed: A trust transfers things faster because it avoids probate.
• Control: Both let you control who gets your things, but a trust gives more options—such as giving money to children over time instead of all at once.

Which One Should You Choose? There is no one-size-fits-all, so it is important to meet with an attorney who specializes in estate planning to discuss the best way to design your estate plan to carry out your wishes.
Contact our office today to meet with one of our attorneys to start putting your plan in place.