A Guide on the Difference Between a Trust and a Will

Did you know that only 45 percent of adults in the United States of America have a living will or trust? It’s important to make sure that you take steps to take care of your family after you pass away with estate planning. Hiring a lawyer is a great way to get started with setting up your estate.

Still, it’s a wise move to get a better idea of the difference between trust and a will before writing a will. The good news is that you’ve found the perfect place to learn all about the differences that you need to know about when it comes to trust vs. will.

Keep reading this article to learn more today!

What Is a Will?

It’s important to note that wills and the different types of trusts have a number of areas where they overlap. Despite those similarities, wills and trusts have a notable number of differences that could impact your family after you pass away.

Wills differ from the types of trusts because they go into effect at a different time compared to trusts. Your will won’t go into effect until after you pass away. Wills are a more straightforward option if you’re looking to pass your assets on to family members and close friends.

You can name your kids and pets as beneficiaries and it’s also your chance to choose where your assets go. It’s also a great chance to get your final arrangements figured out after you pass away. The downside is that you’ll have less control over how your assets get distributed.

What Is a Trust?

Trusts offer many of the same benefits as wills, but they also tend to get a bit more complicated. If you want to start a trust for your family then you should consider hiring a lawyer and getting a trust put in place. The big reason why many people opt to get a trust is the greater control over where your assets go when you pass away. 

You’ll get to pick the assets that you want to include in the trust and choose who they’ll go to. Trusts could seem too complicated to work with but they’re worth the effort of hiring a lawyer and placing your assets in them. You should check out these lawyers when you’re ready to start estate planning.

The big reason why many people opt to go with a trust is that you can avoid your assets going to probate court. Your descendants will avoid the major expenses associated with your assets entering into probate after you pass away.

Now You Know the Difference Between a Trust and a Will

There are a number of things that set trusts and wills apart, but it’s hard to know the best option for you if you don’t know the difference between a trust and a will. Trusts are a better option for your estate planning if you wish to avoid your assets going to probate after you pass away. Wills are great if you want estate planning that is less complicated.

For more helpful articles like this one, check out the rest of our blog today!