Will or Trust: Which Is Better?
Understanding the Key Differences Between Wills and Trusts - and Why the Right Choice Matters for Your Family's Future
When planning for the future, one of the most important questions you’ll face is: Should you create a will or a trust? Both are valuable estate planning tools, but they serve different purposes. Understanding the strengths of each can help you make an informed decision that protects your family, your assets, and your legacy.
What Is a Will?
A will is a legal document that outlines your wishes for how your assets should be distributed after you pass away. It also allows you to name guardians for minor children and appoint an executor to carry out your instructions. Wills are typically easier and more affordable to create than trusts and serve as the foundation of most estate plans.
However, there are some drawbacks:
- A will must go through probate, a court-supervised process that can be time-consuming and public.
- It does not take effect until death and offers no protection during your lifetime in case of incapacity.
- Inheritance is typically distributed in lump sums, with no ongoing oversight.
What Is a Trust?
A trust is a legal arrangement that holds and manages assets on behalf of beneficiaries. It goes into effect as soon as it is signed and funded, making it a versatile tool for both lifetime and after-death planning. There are different types of trusts, but the most common in estate planning is a revocable living trust.
Trusts offer several key advantages:
- Avoid Probate: Assets in a trust bypass the probate process, saving time and maintaining privacy.
- Incapacity Planning: If you become incapacitated, your successor trustee can manage your affairs without court intervention.
- Greater Control: You can set specific terms for how and when beneficiaries receive their inheritance.
- Privacy and Efficiency: Trusts do not become public record and generally allow for quicker asset distribution.
So, Which Is Better?
The answer depends on your personal circumstances:
- A will may be sufficient if your estate is small, your wishes are straightforward, and you're comfortable with probate.
- A trust may be the better choice if you want to avoid probate, maintain privacy, or provide more structured financial support to your heirs.
In many cases, a combination of both is best. A pour-over will can complement a trust by ensuring any assets not previously transferred into the trust are included after death.
Special Consideration for Caregivers
If you’re caring for a loved one with special needs, a trust is almost always the better option. A trust allows you to set aside assets for their care without disqualifying them from essential government benefits like Medicaid or SSI. It also provides structured, long-term financial management, which is critical if your loved one may not be able to manage money independently.
Planning with Confidence
Estate planning isn’t just about who gets what. It’s about protecting your family, reducing stress, and ensuring your wishes are carried out clearly and efficiently. Whether you need a simple will, a comprehensive trust, or guidance as a caregiver to a loved one with unique needs, working with an experienced estate planning attorney ensures your plan is legally sound and tailored to your goals.
Ready to get started? Contact Ashley Ownby, Attorney at Law, in Cleveland, TN, to schedule a consultation and create a plan that gives you peace of mind.
