Will vs. Trust
Which Document is Right for Your Family?
Everyone has heard of a Will and a Trust, but many people don’t know the crucial differences between them. Both are valuable estate planning documents, but they serve very different roles and work together to create a solid estate plan.
Our team at Kane, Hartley & Kane, provides guidance on how best to use a Will or a Trust to meet your family’s objectives.
The Main Difference: When They Take Effect
The biggest difference between a Will and a Trust is when they actually go into effect.
A Will only goes into effect after you die. It is a document that sets out who will get your property and names an executor to carry out those wishes.
A Trust takes effect as soon as you create it. A Trust can be used to begin distributing property before death, at death, or afterward.
The Main Difference: When They Take Effect
| Feature | Will | Trust |
|---|---|---|
| Property Coverage | Disposes of any property held solely in your name when you die. | Deals only with property that has been transferred into the Trust’s name. |
| Property Not Included | Does not distribute property held in joint tenancy or a Trust. | You must transfer ownership of assets to the Trust’s name to include them. |
A Trust is a legal arrangement where one person (or an institution like a bank or law firm), called a “trustee,” owns property for the benefit of another person, called a “beneficiary.”
The Probate Factor: Time, Cost, and Privacy
This is where the choice between a Will and a Trust can significantly impact your family’s experience:
| Aspect | Will (Probate) | Trust (Non-Probate) |
|---|---|---|
| Court Involvement | Property distributed pursuant to a Will goes through the Probate Court and process. The court oversees the Will’s administration and ensures the property is distributed correctly. | Property distributed via a Trust passes outside of probate, so a court doesn’t need to oversee the process. |
| Time & Money | The Probate process can take time and involves court fees. | Passing property outside of probate can save time and money for your heirs. |
| Privacy | A Will, once probated, becomes part of the public record. | A Trust can remain private. |
| Upfront Cost | Generally less expensive to create initially. | The creation and proper maintenance of a Trust can be much more expensive. |
Advantages Beyond Distribution
Each document offers unique benefits that might be important to your estate plan:
A Will allows you to:
- Name a guardian for your minor children.
- Specify your funeral arrangements.
A Trust allows you to:
- Plan for your potential disability.
- Potentially provide savings on inheritance or estate taxes.
We can offer you clear guidance and planning on the best tools to use in your estate plan to achieve your objectives.
Frequently Asked Questions
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How can estate planning help me avoid probate?Many people want to know how to avoid probate. While probate is not always bad, there are several ways to reduce or avoid it. Common probate-avoidance strategies include:
- Creating a revocable living trust.
- Using beneficiary designations on retirement accounts and life insurance.
- Holding assets jointly with rights of survivorship.
- Utilizing transfer-on-death or payable-on-death designations.
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Do I Need a Will or a Trust?Many people ask whether they need a Will or a trust. The answer depends on your goals, family circumstances, and assets. A Will directs where your assets go after death and names guardians for minor children. A revocable living trust can provide additional benefits, such as avoiding probate, maintaining privacy, and making it easier to manage assets during incapacity. For many families, a Will is sufficient. For others, a trust may provide important advantages. An experienced estate planning attorney can help determine which option best fits your situation.
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What Documents Are Included in an Estate Plan?Most estate plans include:
- A Last Will and Testament.
- A Durable Power of Attorney.
- Health Care Instructions and Advance Directives.
- A Living Will.
- HIPAA authorizations.
- A Revocable Living Trust.
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What Is the Difference Between a Will and a Living Trust?A Will only becomes effective after death and generally requires probate. A living trust becomes effective immediately and allows assets held in the trust to pass outside of probate. Living trusts can also simplify asset management during incapacity and provide greater privacy. However, trusts are not necessary for everyone, and many families are well served by a Will-based estate plan.
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Who Should Be My Executor, Trustee, or Power of Attorney?Choosing an executor, trustee, or agent under a Power of Attorney is one of the most important decisions in estate planning. These individuals should be trustworthy, responsible, and capable of handling financial and legal matters. They may be a spouse, adult child, sibling, close friend, or professional fiduciary. The right person is often someone who can communicate well, remain organized, and carry out your wishes faithfully.
Will & Trusts Attorneys in Glastonbury
Contact Kane, Hartley & Kane to learn more about Wills & Trusts. Our law firm works with clients in Glastonbury, CT and throughout Hartford County. We can help you decide which option is best for you and your estate planning needs.
To schedule a consultation, call us at (860) 633-3651 or leave a message on our contact page.