DAL Law Firm: Trust vs. Will: What’s the Difference?
One of the most common questions we hear from clients is, “Do I need a will or a trust?”
It’s a great question, and the answer is that it depends on your goals.
Many people assume a will and a trust accomplish the same thing because both are estate planning documents. While they do share some similarities, they actually work very differently. Understanding those differences can help you make the best decision for yourself and your family.
Let’s look at a few of the biggest distinctions.
Probate
The biggest difference between a will and a trust is probate.
A will is designed to direct how your assets are distributed after you pass away. However, a will does not avoid probate. In fact, a will is the document that is submitted to the probate court to begin the probate process.
Probate is the legal process of administering someone’s estate after they die. During probate, the court oversees the payment of debts, validates the will, and authorizes the transfer of assets to the beneficiaries.
For some estates, probate is relatively straightforward. For others, it can take many months or even longer depending on the circumstances. There are also court costs, filing fees, and often attorney’s fees associated with the process.
A properly prepared and properly funded revocable living trust works differently.
Instead of your assets passing through probate, assets that have been transferred into the trust are generally managed and distributed by your successor trustee according to the instructions you’ve already provided in the trust document. That means your family can often avoid the probate process entirely, making administration simpler and more efficient.
It’s important to remember, though, that creating a trust alone is not enough. The trust must also be funded, meaning your assets need to be properly titled in the name of the trust or otherwise coordinated with your overall estate plan. An unfunded trust may still require probate for assets that were never transferred into it.
Privacy
Another important difference is privacy.
When a will is filed with the probate court, it generally becomes part of the public record. Depending on your state’s laws, information about your estate, your beneficiaries, and many of your assets may be available for others to view.
Many people are surprised to learn this. They assume estate plans remain confidential, but probate proceedings are often public.
A revocable living trust, on the other hand, generally remains private.
Because there is usually no probate proceeding for assets held in the trust, your family’s financial information and the details of your estate plan are typically not filed with the court. For many families, maintaining that privacy is an important benefit.
Cost
People often compare wills and trusts based solely on the initial cost.
Generally speaking, a will costs less to prepare than a comprehensive revocable living trust. If you’re only looking at today’s legal fees, a will may appear to be the less expensive option.
However, estate planning isn’t just about today’s costs. It’s also about the costs your loved ones may face in the future.
While a trust typically requires a larger investment upfront, it can reduce the time, expense, and administrative burden associated with probate after your death. In many situations, families find that the additional planning they did ahead of time saves significant stress later.
Of course, every family’s circumstances are different. The right choice depends on your assets, your family dynamics, and your long-term goals.
Which One Is Right for You?
The truth is that there isn’t a one-size-fits-all answer.
Some people only need a well-drafted will. Others benefit tremendously from having a revocable living trust. In many estate plans, both documents are used together because they each serve different purposes.
The best estate plan is the one that’s customized to your specific situation, not someone else’s.
If you’re unsure whether a will or a trust makes more sense for you, speaking with an experienced estate planning attorney can help you understand your options. A little planning today can save your loved ones significant time, expense, and stress in the future.
If you’d like to discuss your estate planning goals and determine which option is the best fit for your family, we’d be happy to help.
Visit us online at www.dallawfirm.com or check out our YouTube channel at https://www.youtube.com/@dallawfirm for more discussions about estate planning, probate, wills, and trusts.
Contact us:
19803 1st Avenue S.
Suite 200
Normandy Park, WA 98148T (206) 408-8158
F (206) 374-2810
EDITOR’S NOTE: Sponsored Posts like this are paid, “Native Advertisements” that help businesses and organizations improve their internet presence and all-important SEO. South King Media also underwrites fundraisers from local nonprofits. To learn more about how your business or organization can directly reach our expanding, engaged audience in South King County, please email Theresa Schaefer at vtheresa@comcast.net.
