Will vs. Trust
When planning for the future, ensuring your loved ones are cared for is paramount. Two cornerstone tools in estate planning are wills and trusts. While they share the common goal of distributing your assets after your passing, they operate in distinct ways and offer different advantages. Below, we’ll explore the key differences between a will and a trust to help you determine which option might be right for your needs and why you might benefit from including both tools in your estate plan. For advice and assistance tailored to your specific needs in Harris County, contact Leigh B. Meineke Law Firm to speak with a knowledgeable and experienced Houston estate planning lawyer.
What Is a Will?
A will, also known as a “last will and testament,” is a legal document that outlines how you want your assets distributed after your death. It allows you to:
- Name beneficiaries for your property.
- Appoint a guardian for minor children.
- Designate an executor to oversee the distribution of your estate.
Wills are subject to probate, a court-supervised process where the validity of the will is confirmed, debts are paid, and assets are distributed to beneficiaries. While probate ensures your wishes are carried out, this process can be time-consuming and plays out in the public eye since court supervision is required.
What Is a Trust?
A trust is a legal arrangement in which a trustee manages and distributes assets according to your instructions, both during your lifetime and after your death. There are several types of trusts, but the most common for estate planning purposes is the revocable living trust. Trusts allow you to:
- Avoid probate, providing privacy and quicker asset distribution.
- Maintain control over your assets while you’re alive and designate how they’re handled after your death.
- Plan for incapacity by including instructions for managing your affairs if you become unable to do so.
Unlike wills, trusts take effect as soon as they are created and funded, offering more flexibility and control during your lifetime.
Key Differences Between Wills and Trusts
Probate: Wills must go through probate, which is a lengthy process supervised by the court system. Once entered into probate, the will becomes a public record, meaning members of the public or media could see the details of your estate and how it is being distributed. Trusts avoid probate, allowing for a quicker and more private estate administration.
Effective Date: Wills go into effect upon your death. Prior to that time, they can be amended or revoked and replaced with new wills. Trusts go into effect as soon as they are created and funded, allowing you to benefit from them while also securing trust assets for the future. Revocable living trusts can also be revoked during your lifetime if your needs or preferences change.
Privacy: A will becomes a public record during probate. A trust is private and stays private if that is your intention.
Incapacity Planning: A will does not address incapacity, while a trust can include provisions for incapacity, such as naming a successor trustee. With a will or a trust, additional documents such as advance directives and powers of attorney can help you fully plan for any period of incapacity.
Cost: Wills are less expensive to create than trusts, but they must go through probate, the cost of which must be borne by the estate before heirs can receive their inheritance. Trusts have higher upfront costs but may save money overall.
Choosing Between a Will and a Trust
The decision to use a will, a trust, or both depends on your specific circumstances. A will may suffice if your estate is modest and privacy or probate avoidance isn’t a concern. However, if you have significant assets, want to avoid probate, or need a plan for potential incapacity, a trust might be the better option. Many people use a combination of both, creating a comprehensive estate plan that addresses all their needs.
Consult a Houston Estate Planning Attorney at Leigh B. Meineke Law Firm Today
Estate planning is essential, but too many people avoid the subject because they are daunted by the prospect. At Leigh B. Meineke Law Firm, we help individuals and families in Harris County create tailored estate plans that align with their goals. Whether you’re deciding between a will and a trust or need assistance drafting a complete estate plan, we’re here to guide you and assist you every step of the way.
Contact us today by calling 832-706-0244 to schedule a consultation and take the first step toward securing your future and your family’s well-being.
