Planning for the future might feel like a big task, but one thing is clear—it’s important for your family. If you’ve been wondering how to secure your assets and provide for your loved ones, you’ve probably come across two key tools in estate planning: trusts and wills. These aren’t just “legal terms.” They’re practical tools that can make a difference in how your wishes are carried out.
But do you need a trust, a will, or both? Let’s simplify this so you can determine what works best for you.
What is a Trust?
Think of a trust as a container that holds your assets—like property, bank accounts, and investments. This “container” is managed by a trustee (someone you choose) and ensures your assets are given to your beneficiaries according to your wishes. Trusts come in different forms for different purposes, but the most common is a living trust, which you can create with an attorney and adjust, or even revoke, while you’re alive.
Key Benefits of a Trust:
- Avoids Probate: Probate is a court-supervised process of distributing your estate, which can take months (sometimes years) and rack up expenses and legal fees. On average, it could cost 5% to 10% of the value of your probate estate to get through probate court. A trust bypasses this process, ensuring easier and quicker distribution.
- Privacy: Probate records are public, meaning anyone can see who inherited what. A trust keeps this information private.
- Ongoing Management: A trust can manage assets for children or dependents long-term, ensuring they’re cared for responsibly over time and, in some cases, protected, depending upon the terms of the trust.
Who might find a trust helpful? If you have specific plans for how and when beneficiaries receive their inheritance or own significant assets, a trust might be a smart choice. If you would like to protect assets intended for beneficiaries from bankruptcies, lawsuits, creditors, and predators that could affect your beneficiaries, a trust would be helpful.
What is a Will?
A will is a legal document that also outlines your final wishes, including who should receive your property, who will care for minor children, and even who manages your estate (called an executor). Everyone benefits from having a will, regardless of their financial situation. It’s straightforward and ensures there’s a written plan to guide your loved ones during a difficult time.
Key Benefits of a Will:
- Guardianship: If you have children under 18, a will allows you to appoint a guardian to care for them.
- Simplicity: Wills are typically easier and quicker to set up than trusts.
- Covers What Trusts Don’t: A will allows you to include personal items and instructions not always addressed in a trust, like funeral arrangements or sentimental belongings.
However, keep in mind that a will does not avoid probate and can take longer for assets to reach your loved ones. You should not be fooled into believing that everything will be OK simply because you have a will. A will ensures your family will find themselves in probate court.
Can You Use Both a Trust and a Will?
The short answer is yes—and combining them is often the best approach.
Here’s how it works:
- A trust handles the bulk of your assets, especially those with financial or long-term implications (like real estate and investments).
- A will acts as a safety net to cover anything not included in the trust. This is often called a pour-over will, which transfers leftover assets into your trust upon your passing.
Using both ensures no detail is left out. For example, while your trust may manage your estate, your will could designate guardianship for your children—a detail the trust wouldn’t typically cover.
Think of a trust and will like a dynamic duo, each complementing the other to fulfill all aspects of your estate planning.
Which One Should You Prioritize?
This depends on your personal and financial situation. Consider the following:
A Trust Might Be Right for You If:
- You want to avoid probate and ensure quick distribution of assets.
- You value privacy for your family and financial details.
- Your estate involves arrangements, like caring for dependents over time or managing multiple properties.
A Will Might Be Right for You If:
- You have limited assets and just need a simple plan for distribution.
- You need to appoint a guardian for young children.
- You want a legally binding way to express specific final wishes.
For most people, the combination of both provides the most comprehensive coverage and protection.
FAQs About Trusts and Wills
Do I need a lawyer to create a trust or a will?
While DIY options exist, they are not recommended. An estate planning lawyer is vital when creating a trust (or for complex wills). A poorly written document can lead to unintended consequences, including disputes or delays, leaving your family in conflict and court
Can I change my trust or will later?
Yes, both documents should be updated to reflect changes in your life, such as marriage, divorce, or the birth of a child. In fact, we offer varying tiers with our Shield & Key Membership Experience to make sure your plan is always a reflection of your life and circumstances.
What happens if I don’t have either?
Without a will or trust, your estate will be distributed according to your state’s laws, which might not align with your wishes. This can also cause unnecessary delay, expense, and stress for your loved ones.
Are trusts only for wealthy people?
Not at all. Trusts provide benefits like avoiding probate and asset protection that apply to estates of all sizes.
How Chandler Law Can Help You Take the Next Step
Estate planning isn’t something to put off—it’s an opportunity to secure your family’s future and bring peace of mind. At Chandler Law, we’re here to help you determine what’s right for your unique situation, whether that’s a trust, a will, or both.
Furthermore, our comprehensive planning process also considers the use of Financial Powers of Attorney, Healthcare Directives, HIPAA Authorizations, and our Kid’s Protection Plan for families with minor children.
Our team takes the time to listen to your goals and provide tailored solutions that make sense for you. Contact Chandler Law today to schedule your consultation and start building a plan you can feel confident in.
Your legacy begins with the decisions you make now—start shaping it today.
