What Is the Difference Between a Will and a Trust?

Estate planning is an essential step for anyone looking to protect their assets and provide for their loved ones after they’re gone. Two of the most common tools for estate planning are wills and trusts, each serving a unique purpose in the process. Understanding the difference between these two documents is key to making informed decisions about your estate. At Taylor & Associates Law, PC, we assist the Brooklyn community with all aspects of estate planning, helping you choose the best options for your specific needs.

What is a Will?

A will is a legal document that outlines your wishes for the distribution of your assets upon your death. It allows you to designate beneficiaries for your property, name a guardian for minor children, and specify other final wishes.

Key Characteristics of a Will:

• Goes into effect after death: A will only takes effect after the person’s passing. During your lifetime, you can amend or revoke it as circumstances change.
• Probate Process: Wills must go through probate—a court-supervised process that ensures the will is valid, settles debts and taxes, and distributes assets as specified. This process can sometimes be time-consuming and costly, depending on the complexity of the estate.
• Public Record: Because wills go through probate, they become public record, meaning that anyone can view the details of your estate plan.

Wills are a straightforward way to communicate your wishes and ensure that your loved ones are provided for after you pass. However, the probate process and public nature of wills may not be ideal for everyone.

What is a Trust?

A trust, on the other hand, is a legal entity created to hold and manage assets on behalf of your beneficiaries. There are various types of trusts, but one of the most commonly used is a revocable living trust, which allows you to manage your assets during your lifetime and make changes as needed.

Key Characteristics of a Trust:

• Takes effect during your lifetime: Unlike a will, a trust can be set up and funded while you are alive. A revocable living trust, for example, allows you to retain control over your assets and make adjustments as necessary.
• Avoids Probate: Trusts generally do not have to go through probate, which can save time and costs, and keeps your estate matters private. The trustee you appoint can distribute assets directly to your beneficiaries according to your wishes.
• Can be kept private: Since trusts are not required to go through probate, the details of your assets and beneficiaries remain private, providing additional confidentiality for your estate.

Trusts offer flexibility and control, especially for those who want to avoid probate, maintain privacy, or establish specific conditions for the distribution of their assets.

Choosing Between a Will and a Trust

Both wills and trusts have unique benefits, and the best choice depends on your specific circumstances and goals. For example:

• Wills are typically sufficient for people with simple estates and straightforward wishes. They’re also ideal for appointing a guardian for minor children.
• Trusts are beneficial for individuals with larger or more complex estates, or for those who want to avoid probate and ensure privacy. Trusts can also be useful if you wish to set conditions on inheritance, such as staggered distributions to beneficiaries over time.

Many people choose to incorporate both a will and a trust into their estate plan, using each document to fulfill different goals.

Let Taylor & Associates Law, PC Help with Your Estate Planning Needs

Estate planning is a deeply personal process, and our team at Taylor & Associates Law, PC is here to help you navigate it with confidence. Whether you are considering a will, a trust, or a combination of both, we provide the knowledge and experience needed to develop a comprehensive plan tailored to your unique needs and goals.

Serving the Brooklyn community, we are dedicated to helping you protect your assets and secure your family’s future. Contact Taylor & Associates Law, PC today to learn more about our estate planning services and how we can assist you in crafting a plan that offers peace of mind.