Last Will Vs. Trust: Which Do You Need?

Last wills and trusts are completely distinct. Whether you need a last will or a trust depends entirely on your personal situation and preferences. But what precisely sets last wills and trusts apart, and during estate planning, how do you determine which one suits you best?

What’s a Last Will?

A last will is a legal document that is part of a comprehensive plan for your assets after you die. It specifies who will inherit your possessions and appoints someone to carry out your final wishes. A will allows you to decide who gets your property and name beneficiaries. It also lets you choose a guardian for any underage children.

Wills typically go through probate, which is the court's process for validating the will and legally transferring assets to beneficiaries. If you die without a will, the court gets to distribute your property and pick beneficiaries through a process called intestacy.

If you have questions about making a will, contact us! Our legal team can answer any questions you have about setting up a last will.

What’s a Trust?

A trust is a legal arrangement where one person, the trustee, holds assets for the benefit of another person, the beneficiary. A trust can be set up to benefit either the trustee or the beneficiary. You do not need to be deceased to have an active trust. A trust takes effect as soon as it is established. Trusts tend to be more expensive to set up and administer than a will, but they remain private and guarantee prompt action if specified.

Many people incorrectly assume that trusts are only for the wealthy. The most common reason for establishing a trust is so that assets can avoid probate when the trust creator dies. A trust only includes property that has been transferred to it. Assets must be put in the trustee's name in order to be part of the trust.

How do I Choose What’s Right for Me?

Choosing the best option for distributing your assets varies based on your preferences and circumstances. Some key considerations when deciding if you need a will or trust include:

Wills are less expensive to create than trusts, but go through probate after death. Probate is a lengthy, costly process that most want to avoid.

Trusts require more work and are typically more expensive to establish. However, they take effect right away per the trust terms, bypass probate, and remain private. Trusts are preferable for those with multiple properties, as multiple properties make probate even more complicated and time-consuming.

• The number of beneficiaries you want to transfer property to.
• The types of assets you own and are distributing.
• Whether you want to actively manage your estate plan or prefer an attorney handle it.

The right choice depends on you and your situation! Here at Gravis Law, we encourage examining all options and aspects involved. It can get confusing and overwhelming. If you need a second opinion or have questions, call us today! Our estate planning experts will empower you to take charge of what's yours.