Last Will And Testament Vs. Trust
While several estate planning options exist, the most significant distinction may be drawn between the classic Last Will and Testament (Will) option and a comparatively broader set of legal arrangements known as Trusts. Understanding the differences between a Last Will and Testament vs. Trusts can help individuals determine which option is ideal for them. Consider visiting with an experienced estate planning attorney from Fleurinord Law, PLLC, who can help ensure your wishes are carried out by contacting (888) 904-2297.
What Are Wills and Trusts?
The American Bar Association defines a Will as a document that generally allows individuals to distribute the property they own at their time of death according to their wishes. Wills also allow a person to appoint a person to become a guardian for their minor children. Conversely, according to the Internal Revenue Service (IRS), Trusts refer to relationships in which one individual holds a property’s legal title and has an obligation to use or retain the property to benefit someone else.
Basic Differences Between a Last Will and Testament Vs. a Trust
Several overlaps between Trusts and Wills exist, but there are many key differences between them, too. In essence, both estate planning tools can enable individuals to state who receives their assets after their death.
Last Will and Testament
Wills are legal documents that allow individuals to leave multiple instructions regarding their asset distribution, final arrangements, and provisions for their dependents after their death. However, Wills provide individuals with limited control concerning asset distribution and will not prevent the need for probate.
Trusts
Trusts can provide individuals with several different benefits than Wills, including more specific control over the distribution of assets. A Trust allows a person to transfer their assets in such a way that the Trust now has ownership of those assets. In this way, a person can utilize a Trust to avoid certain taxes, and avoid probate.
Understanding Probate
If a person executes a Last Will and Testament, their assets will need to go through the probate process. This legal process can be both time-consuming and costly. However, in many cases it may be possible to avoid this process by establishing a Trust. Anything transferred to a Trust technically no longer belongs to the individual who initially owned it, meaning it is not subject to probate. Moreover, the assets within a Trust and their distribution remain private. In contrast, since probate is a public proceeding, the distribution of assets via probate, and the accompanying terms established in a Will, can be visible to the general public.
If you are hoping to protect your loved ones from the probate process, you may wish to consider speaking with an experienced Texas or Florida estate planning attorney from Fleurinord Law, PLLC, to learn more about which type of estate planning documents would best ensure your wishes are carried out following your death or incapacitation.
Frequently Asked Questions
There are many frequently asked questions that surround the differences between a Last Will and Testament Vs. Trusts. Find the most commonly asked questions and answers below.
Is a Will Better Than a Trust?
Trusts and Wills have specific and distinct objectives, meaning it is not helpful or accurate to state that one is categorically better than another. Individuals should determine the estate planning solution that makes sense for them by considering their own situations, goals, and needs. By doing this, they can then choose an appropriate estate planning tool that ensures their wishes are following in the event of their incapacitation or death.
Is a Will More Important Than a Trust?
Neither legal document is more important than the other, however, they both accomplish different goals.
Is It Possible to Have a Will and a Trust?
Some individuals may wish to have both a Will and a Trust as part of their estate plan. Trusts are tools that enable individuals to manage and distribute their assets after their death and during their lifetime. Conversely, a Will allows people to select an executor for their estate, appoint guardians for minors, and also addresses any final wishes regarding the distribution of their assets.
It is important to note that there are many different types of Trusts, including both revocable and irrevocable Trusts. Some of the types of Trusts that a person could create include the following:
- Special needs trusts
- Pet Trusts
- Gun Trusts
- Testamentary Trusts
- Spendthrift Trusts
- Charitable Trusts
- Totten Trusts
- Asset Protection Trusts
A Trust allows specificity with regard to certain assets and how they will be handled to ensure that a person’s wishes are following after their death.
Discuss Your Options with an Experienced Estate Planning Attorney
Creating an effective estate plan that involves a combination of a Will and a Trust (or multiple Trusts) can help individuals ensure the correct distribution of their assets once they die or become incapacitated. Moreover, a carefully developed set of estate planning documents can help prevent family arguments, save time, avoid unnecessary taxation, and maximize the estate’s value. There is a deep complexity regarding the the choice between a Last Will and Testament vs. a Trust. If you are in Texas or Florida, consider visiting with an experienced and compassionate estate planning lawyer with Fleurinord Law, PLLC at (888) 904-2297. Our legal team would welcome the opportunity to visit with you and help ensure that your wishes are carried out.