Will or Trust? Which one is better?

The best time to create a will or trust was yesterday. The second-best time is now. The question that remains is which one is better suited to your needs? While both are legal documents that ensure your estate is properly distributed to your beneficiaries pursuant to the estate planning goals, they act in different ways. There is no such thing as "best" and instead, as in other things in life, estate planning is also situational. Legal documents favor different scenarios so having competent counsel to plan properly is essential. Don't worry; we are here to help you make the right decision by presenting what sets them apart.

Will or Trust: Which one is better?

While there might not be a straightforward answer when comparing wills and. trusts, the latter generally does have more perks. A will is a written document signed, notarized and witnessed that indicates exactly how your assets will be distributed after you pass away. Another drawback is the fact that wills can be contested in court. 

On the other hand, a revocable living trust provides more control over your estate and how it will be split and distributed. You would be able to change the number or names of beneficiaries at any moment, avoid estate taxes, and keep family financial matters private. Trusts can avoid probate, and therefore, the decisions you make about your assets will remain private.

The advantage that wills have over trusts is that they are easier and generally cheaper to create. If you plan on creating a living trust, you will need to prepare more documents and go through the process of funding the trust. However, this might save you more money in the long run since trusts can be used to avoid taxes and probate costs if certain conditions are met. It's also important to mention that a trust needs to be managed closely after it is created.

Here are some key differences between wills and trusts:

• Trusts can be used to avoid probate;

• Wills are easier to create;

• Trusts can be more expensive to create (but they can also be used to avoid taxes);

• Wills are public documents, unlike trusts that keep family matters private;

• Living trusts allow to remove or add beneficiaries at any moment;

• Wills are used to name guardians for minor children and pets;

• Wills only become effective after passing away.

Final Words

If you want to make sure that your estate is properly managed and that you have as much control as possible over your assets, trusts are typically the way to go. Even though trusts are the clear "winner" when comparing them to wills, some people might be turned away by how tedious they can be to create. Looking on the bright side, you don't have to do it alone and without guidance. We are here to help make the process easier.