Is a Trust Better Than a Will?

One of the questions that we hear often is: Is a Trust better than a Will? The answer we normally give is one of the most lawyerly responses in our playbook: It depends. While it seems like a glib answer to an honest question, the fact of the matter is that whether a Trust or a Will is better is highly dependent on a person’s current and foreseeable circumstances.

Working with an experienced estate planning attorney is always going to be the best way to determine which is better for you. But having some initial information about each one, and some of their benefits and drawbacks, will go a long way to helping you to decide what is best for you and your family.

Let’s start with some basics. What are Trusts and Wills? The macro answer is that they are both estate planning tools designed to make sure that your assets end up with whomever you choose. But they’re tools that work very differently. For instance, a Will takes effect after you die and directs how your assets are to be distributed, while a Trust can take effect immediately and can manage assets both during your lifetime and after death.

There are other important differences as well. After you die, a Will must be probated by the court and a succession case opened (called a probate in the other 49 states) before your assets can be distributed. A Trust, on the other hand, doesn’t require any court intervention to direct your assets the way that you want.

There are some general rules of thumb that people may use to determine whether a Will or Trust is more appropriate for their situation, as well as some downsides to each.

Wills

A Will may be the best option for a person or couples, with or without children, who don’t own any immovable property, such as land or a home, and who also have limited personal assets. There are advantages to using a Will, such as lower upfront legal costs, the ability to name guardians for minor children, and instructions for the transfer of assets.

However, Wills offer no privacy, limited control over how and when your heirs receive your assets, do not manage assets during incapacity, and require the public court process of succession, which can be time-consuming and expensive for your heirs.

Trusts

A Trust may be the best option for a person or couples, with or without children, with significant property and personal assets (including land or a home), business owners, blended families, or those seeking privacy, incapacity planning, and succession avoidance. A Trust has different advantages. A Trust avoids the court succession process and provides enhanced privacy for you and your heirs. A Trust also increases your control over asset distribution; you can decide when your heirs receive some, or all, of your assets and how they receive the assets (outright or in a separate Trust). This type of control can be particularly beneficial when your heirs are minors, disabled, or have creditor issues. If you have significant assets, a Trust can also minimize estate taxes.

That said, a Trust is generally more complex, time-consuming, and expensive to establish and maintain compared to a Will, often requiring more upfront legal costs and ongoing management.

So, which is better for you? Contact us at Aspen Estate Planning, and we can help you find the answer.