When planning your estate, choosing between a will and a living trust can be confusing. While both serve to distribute your assets after death, they have important differences.

What is a Will?

A will is a legal document that outlines how your assets should be distributed after you pass away. It also allows you to:

•   Appoint an executor to handle your estate after you pass.
•   Name guardians for your minor children.
•   Specify personal gifts, such as family heirlooms or keepsakes.

However, a will still must go through probate, which is a court-supervised process that can be time-consuming and costly.

What is a Living Trust?

A living trust allows you to transfer assets into a trust during your lifetime, which will be managed and distributed by someone known as a trustee after your death. Unlike a will, a living trust:

•   Avoids probate, allowing for quicker and private distribution of assets.
•   Manages your assets if you become incapacitated, since a successor trustee can step in.
•   Offers privacy, as it doesn’t become a public document like a will during probate.

Setting up a trust is more complex and expensive upfront, but it can save time and money in the long run by bypassing probate.

What is the takehome message on Differences between a Will and Living Trust?

1.   Probate: Wills go through probate, while living trusts avoid it.
2.   Incapacity: A will only takes effect after death, but a trust can manage your assets if you’re incapacitated.
3.   Cost: Wills are cheaper to set up, but probate fees can add up. Trusts cost more to establish but avoid probate expenses. Trusts are usually less costly in the long run.

When to Choose a Will

•   You have minor children and need to name a guardian.
•   Your estate is simple and the probate process isn’t a concern.
•   You want a straightforward, lower-cost option for estate planning.

When to Choose a Living Trust

•   You want to avoid probate and distribute assets quickly.
•   You’re concerned about incapacity and need a plan for managing your assets.
•   Efficiency is important, especially for larger estates or businesses.

Do You Need Both Types Of Documents In Your Estate Plan?

In my many years of experience representing clients on estate planning, I find that many people benefit from having both a will and a living trust. A “pour-over will” can catch any assets not included in your trust and ensure they’re distributed according to your wishes.

Click the link below to see what we can do for you and your loved ones!

There are many different ways to prepare for your future with your estate planning attorney. There are many different types of documents, plans, and decisions that you have to make when deciding how you want to distribute your estate. When looking at the options and deciding what estate plan is best for your situation, you may find yourself wondering: what is the difference between a will and a trust? How do I decide which is best for me?

There isn’t just one type of will or one type of trust. It depends upon your personal situation, so it could look different for everyone. However, there are a few key differences that you want to make sure you take note of when you are making your decision.

Wills, And Avoiding Probate

One of the biggest differences between a will and a trust is that a will in Illinois does not avoid probate. A will can settle a dispute as to how an estate will be distributed, but it will still have to go through the lengthy and often expensive probate process.

A trust, on the other hand, avoids the probate process, which can be especially beneficial if you choose to title your home, vehicles, or other assets into a trust.

Although a will itself cannot avoid probate, a will can help you avoid probate if a title company makes a mistake. For example, if you intended to title your house into your trust but the title company does not follow through renaming the house, a will can protect your assets and intentions and prevent you from having to go through probate because of the mistake.

Trusts, And Nomination of a Guardian

Another huge difference is how a person can nominate a guardian for any minor children they have. A trust cannot nominate a guardian in any way. If you have children of minor age, it is important that you use a will to name their guardian in the case of unexpected events.

A trust can rename your assets with a designation to your children, but your trust cannot establish a guardian for your children.

Wills And Trusts Working in Tandem

A person will almost always need both a will and a trust. These two documents work hand in hand in distributing your estate, nominating a guardian, and establishing control of your assets. Anyone who owns a home in Illinois will need to have a trust to title their home in. Very rarely will a person only need a will: unless they own a very modest estate, or do not own a house, you will almost always need both a trust and a will.

Wrapping Up

Everyone’s estate plan will be different, depending on their personal needs and circumstances. Although decision making regarding your estate plan can be confusing and daunting, remember that your estate planning attorney is there to help you remember the differences between each document, and help you decide the best solution for your situation. Schedule a callback by clicking the link below to talk more with me about what plan might be best for you!