Which is Better a Will or a Trust?

A will is a legal document that names the person or people who will inherit your property and other assets after you die. A trust is a legal document that names the person or people who will inherit your property and other assets during your lifetime. A trust can also be set up to provide for someone who is not yet born or a minor child.

The main difference between wills and trusts is that wills are used to distribute assets after death while trusts are used to distribute assets during life. In most cases, the person who creates the trust (the grantor) controls how those assets are distributed from the time of creation until his death. This can allow for more flexibility than if he were relying on his will alone, which would only take effect upon his death.

So, should I have a will or a trust? The answer depends on your situation and goals. A will has many more restrictions than a trust does, so it’s not always the best option for everyone. For example, if you have minor children, it might be better for them to be protected by a trust rather than by your will.

What is the Advantage of a Trust Over a Will?

There are three primary advantages which make trusts more attractive than wills when it comes to estate planning: Flexibility, Control, and Privacy.

Flexibility
A revocable trust often provides more flexibility than a will because of its ability to be changed at any time. A revocable trust is a deed of trust that can be altered or canceled at any time by the holder without going through the steps necessary to terminate a traditional irrevocable trust.

Control
Using a trust is an excellent way to gain greater control over your assets and income. With a well-drafted trust, you can decide how the assets are distributed and how much income you want to receive.

Privacy
One distinct advantage of using a trust over a will is that it provides the person’s loved ones with privacy, which is not an available option when using a will because wills must be probated. When a will goes through the probate process, it becomes a matter of public record. This means that all the information contained within it is now public knowledge. A trust provides privacy because it is not a matter of public record, but it also comes with some disadvantages.

What Are the Disadvantages of a Trust?

Trusts are becoming increasingly popular among clients who want to avoid the time and expense of probate. However, they will usually cost more than a standard asset protection plan and that is something that you need to keep in mind. The major drawbacks to a trust are that it is easily broken, either willfully or with the intent of maliciousness, and can be used in a way that harms the individual who has placed his or her trust into one.

Another disadvantage in establishing a trust is that detailed records of property transferred into and out of the trust must be maintained. The person whose assets will be held by the trust must transfer their personal property, real-estate holdings, and financial assets into the trust. The trust should own new assets as they are acquired. For many people, trusts may prove to be more of a burden than you would prefer.

Conclusion

Individuals who are considering drafting a trust or a will should consult with an estate planning lawyer to ensure that their loved ones are provided for in the future. The wills and trusts lawyer can also provide insight on how to avoid probate which is often time-consuming and expensive.