What is the difference between a will and a trust, and which one is better to use for my estate planning goals?

A will and a trust are both estate planning documents that dictate how your assets will be distributed upon your death. However, there are some key differences that may make one or the other a better fit for your specific estate planning goals.

A will is a legal document that outlines your wishes regarding the distribution of your assets upon your death. It allows you to name an executor who will manage your estate, as well as name guardians for any minor children you may have. A will becomes effective only after your death, and it is subject to probate, which is a court-supervised process of administering your estate.

A trust, on the other hand, is a legal arrangement in which you transfer your assets to a trustee for the benefit of your beneficiaries. There are many different types of trusts, but the most common are revocable living trusts. In a revocable living trust, you act as both the grantor (the person creating the trust) and the trustee (the person responsible for managing the assets in the trust). You can then name a successor trustee to take over if you become incapacitated or die. Unlike a will, a trust becomes effective immediately and does not go through probate.

So, which one is better to use for your estate planning goals? The answer depends on your individual circumstances. Here are some factors to consider:

• Complexity of your estate: If you have a complex estate with many assets, a trust can help simplify the distribution process and avoid probate. A will can also distribute assets, but it is subject to probate and can take longer to administer.
• Privacy: Probate proceedings are public record, so if you value privacy, a trust may be a better option.
• Control over assets: With a trust, you can specify how and when your assets will be distributed. With a will, you have less control over how your assets are distributed because it is subject to the probate court's supervision.
• Cost: Trusts are typically more expensive to set up and require ongoing maintenance, while wills are generally less expensive.

It is important to consult with a licensed attorney to determine which option is best for your specific situation. They can guide you through the estate planning process and help you create a plan that meets your needs.