The Difference Between A Will And A Trust
Understand the difference between a Will Plan and a Living Trust to manage your estate effectively. Learn how each option affects the probate process and decide the best approach for your estate planning needs.
By Austin Payne
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Published 9.19.2024
Let’s start with the basics. When you use a Will to pass on your estate, you typically make provisions for your spouse, children, or others, and might even leave assets to a trust that dictates when and how distributions are made.
You can choose to leave an inheritance outright, giving immediate ownership to the recipient, or you can create a “testamentary trust” within your Will, which sets conditions for when the beneficiary can receive their inheritance. Testamentary trust provisions are included in your Will and take effect after your death.
Will Plan
With a Will Plan, all your assets—such as your home, real estate, and investments—remain in your name. After your death, your assets are frozen, and despite having a Will, your survivors must navigate the court-supervised probate process to transfer assets to those named in your Will. This can involve time and legal fees.
Living Trust
A Living Trust is designed to transfer your estate, or parts of it, to designated beneficiaries after you pass away. By transferring assets to your Living Trust, such as your home and investments, you can avoid probate, making it easier for beneficiaries to receive their inheritance and reducing the expense and delay of settling your estate.
What’s the Bottom Line?
Some people prefer the simplicity of a Will Plan, despite the need for a potentially costly and lengthy probate process. Others choose a Living Trust to avoid probate altogether. Ultimately, the key is to prepare your estate plan and take action. Without it, the government will have complete control over your estate.