What is the difference between a will and a trust, and which one is better for me?

A will and a trust are two different legal instruments that can be used to transfer assets to beneficiaries after death. The main difference between a will and a trust is that a will only becomes effective upon the death of the testator, whereas a trust can be effective both during the life of the grantor and after their death.

A will is a legal document that sets out how a person's assets will be distributed upon their death. It is a one-time, post-mortem transfer of assets that must go through the probate process. Probate is the legal process through which a court oversees the distribution of a decedent’s assets. The probate process can be time-consuming, expensive and public. However, a will allows for the appointment of a personal representative to manage the estate, and for the establishment of a trust to hold assets for beneficiaries.

On the other hand, a trust is a legal arrangement in which a grantor transfers assets to a trustee who will manage and distribute the assets to the beneficiaries according to the terms of the trust. There are two main types of trusts: revocable and irrevocable. A revocable trust allows the grantor to retain control of the assets during their lifetime and modify the trust as necessary. An irrevocable trust transfers ownership of the assets to the trust, which is managed by the trustee for the benefit of the beneficiaries. Assets in an irrevocable trust are usually not subject to probate, which can help to avoid delays and the costs associated with probate.

The decision of whether to create a will or a trust depends on individual circumstances, such as the size of the estate, the type of assets held, the complexity of the estate plan, and personal preferences. In general, a trust may be a better option for those who wish to avoid probate, want to keep their affairs private, or have specific requirements for the distribution of their assets. However, a will may be sufficient for those with smaller estates or less complex estate plans.

It is important to consult with an experienced estate planning attorney to determine which option is best for your individual situation. The attorney can advise on any limitations or exceptions to the advice given, and provide suggestions for further action if necessary. Ultimately, the goal is to create an estate plan that provides for the transfer of assets to beneficiaries while minimizing costs and avoiding unnecessary delays.