When it comes to planning your legacy, one of the first questions many people ask is: Do I need a will or a trust? Both can play an important role in ensuring your wishes are honored, but they work in very different ways – and understanding those differences can help you make the right choice for your unique situation.
What a Will Does – and Doesn’t Do
A will, also known as a last will and testament, is the foundation of most estate plans. It’s a legal document that outlines who should receive your property, money or personal belongings after you pass away. You can also use a will to name guardians for minor children or express other final wishes.
You might think of a will as a roadmap for your loved ones – your written instructions for how you want your affairs handled. However, it’s important to know that a will must go through probate court before it takes effect. Probate is the legal process that validates your will and authorizes the distribution of your assets.
For many families, probate provides structure and oversight, but it can also take time and come with costs. That’s why some people choose to complement their will with other planning tools that can simplify or even bypass the probate process.
How a Trust Works
A trust serves as both a planning tool and a living management system for your assets. When you create a living trust, you transfer ownership of your property into the trust during your lifetime, which allows you to still maintain control over it.
Unlike a will, a living trust doesn’t go through probate. When you pass away, the trustee you’ve appointed can distribute assets directly to your beneficiaries, privately and efficiently. But the benefits don’t stop there.
A living trust can also protect you during your lifetime. If you become ill or incapacitated, your successor trustee can step in to manage your affairs according to your instructions, avoiding the need for a court-appointed conservator. This can bring clarity to your family during uncertain times. In addition, a properly managed trust can help simplify tax and financial management and ensure a smoother transition of assets to your loved ones.
Why You Might Need Both
For many people, the best approach isn’t choosing between a will and a trust – it’s using both together. A trust can handle most assets efficiently, while a will ensures that anything not formally transferred into the trust is still distributed according to your wishes.
Safeguard Your Future
Estate planning isn’t just about paperwork, it’s also about the people you love. Whether you’re starting from scratch or updating an existing plan, taking time to understand how wills and trusts work together can give you confidence that your legacy will be protected.
At HH&J, we offer a free consultation to help you explore your options and design a plan that fits your life, your values and your goals. Let’s work together to ensure your estate plan meets those goals.