Why Do You Need a Will and Trust?

press
Written By Alexandra Ramirez

While a will is an essential part of estate planning, it often isn't enough on its own to fully protect your assets and ensure your wishes are honored. Here's why you need both a will and a trust:

1. Avoiding Probate

  • Will Only: All assets distributed through a will must go through probate, which is a court-supervised process. Probate can be lengthy, expensive, and open to public record, which may delay asset distribution and expose your estate details.

  • Will and Trust: A trust allows you to avoid probate for assets placed within it. This means quicker distribution to beneficiaries, reduced legal costs, and more privacy.

2. Managing Assets During Incapacity

  • Will Only: A will has no effect until after death and cannot help manage your affairs if you become incapacitated due to illness or injury.

  • Will and Trust: A trust can be set up to manage your assets and provide for your care if you are unable to make decisions for yourself, avoiding the need for court-appointed guardianship or conservatorship.

3. Providing Ongoing Control Over Assets

  • Will Only: A will provides instructions for a one-time distribution of your assets upon your death, with no control over how they are managed or spent afterward.

  • Will and Trust: A trust allows you to set terms for how and when your assets are distributed, which is particularly useful for beneficiaries who are minors, have special needs, or might not be financially responsible.

4. Protecting Privacy

  • Will Only: Once probated, a will becomes part of the public record, making details about your estate, beneficiaries, and the distribution of your assets accessible to anyone.

  • Will and Trust: A trust remains private, so the details of your estate remain confidential, shielding your family from public scrutiny.

5. Reducing the Risk of Legal Challenges

  • Will Only: Wills can be contested in probate court, which can lead to lengthy and costly legal battles among heirs.

  • Will and Trust: Trusts are generally harder to challenge than wills. They provide a more robust legal framework, which reduces the likelihood of disputes among beneficiaries.

6. Minimizing Estate Taxes

  • Will Only: A will does not provide any mechanisms for reducing estate taxes, which could mean a larger portion of your estate goes to taxes rather than to your beneficiaries.

  • Will and Trust: Certain types of trusts (e.g., irrevocable trusts) can help minimize estate and inheritance taxes, preserving more wealth for your heirs.

7. Flexibility in Handling Special Situations

  • Will Only: A will is a relatively straightforward document that lacks flexibility for complex family situations or unique financial needs.

  • Will and Trust: Trusts offer flexibility in dealing with special situations, such as providing for a beneficiary with special needs, creating a plan for blended families, or maintaining a family business.

8. Ensuring Immediate Access to Funds

  • Will Only: Beneficiaries may face delays in accessing funds until the probate process is completed.

  • Will and Trust: Trusts can provide immediate access to funds needed for living expenses, medical costs, or other needs, without waiting for probate.

9. Avoiding Family Conflicts

  • Will Only: Wills can leave room for interpretation or disputes among heirs, especially in complex family situations.

  • Will and Trust: By setting clear terms in a trust and designating a trustee to manage assets, you reduce the chances of misunderstandings or conflicts.

10. Achieving Comprehensive Estate Planning

  • Will Only: A will is a basic estate planning tool but doesn't cover all aspects of a person's financial and personal wishes.

  • Will and Trust: A trust, combined with a will, provides a comprehensive estate plan that covers asset distribution, care during incapacity, tax planning, privacy, and more.

In Conclusion:

A will handles essential tasks like naming guardians for minor children and specifying final wishes, but a trust offers significant advantages in managing, protecting, and distributing assets efficiently. Combining both tools ensures a more complete and effective estate plan, tailored to your needs and circumstances.

SCHEDULE A COMPLIMENTARY EVALUATION TODAY WITH OUR ESTATE PLANNING AWARD WINNING TEAM!

Alexandra Ramirez
Next

Success Story — Shirley L.