Will vs Living Trust

A will and a living trust are both legal documents that are used to distribute a person's assets after they pass away. However, there are several key differences between the two that make them better suited for different situations.

A will is a document that outlines how a person's assets will be distributed after they pass away. It must be filed with the probate court, a legal process that can be time-consuming and costly. This process involves proving the authenticity of the will, and notifying and settling debts with the creditors and taxes. The beneficiaries named in the will are entitled to the assets according to the instructions provided in the will.

On the other hand, a living trust is a legal document that allows a person to transfer their assets into a trust while they are still alive. The assets in the trust are then managed by a trustee, who is responsible for distributing the assets according to the instructions outlined in the trust. Because the assets in the trust are not owned by the person, they do not have to go through probate. This can make the process of distributing assets after the person's death much faster and less costly.

The main advantage of a living trust over a will is that the assets in the trust do not have to go through probate, which can save time and money. Additionally, a living trust can be useful in situations where a person wants to keep their assets private, as they are not made public during the probate process.

However, there are also some disadvantages to using a living trust. For example, creating a trust can be more complex and expensive than creating a will. Additionally, a living trust requires ongoing maintenance, such as filing taxes and keeping records, which can be time-consuming.

Ultimately, whether to use a will or a living trust depends on the individual's personal circumstances. If you want to avoid probate, a living trust may be the better option. If you are looking for a simpler and cheaper way to distribute assets after your death, a will may be the better choice. Consultation with an attorney can help you determine which option is best for you.