What is the difference between a Will and Trust?  And why do I need one or the other?  This is the most frequently asked question I get from clients and potential clients. The short answer is –  you need both, because they do two different things for a comprehensive estate plan.

 

Wills: Your Last Testimony

A will (i.e. a Last Will and Testament) is a legal document that tells both your beneficiaries and the government in the state you live in how your assets are going to be distributed after your death. In other words, a Will is a letter to a judge that says – these are the people who get my stuff, and how much of your stuff they are supposed to get. 

Another way you can look at it is a Will is an instructional document for a judge to read and approve in Probate Court. Probate Court is where your stuff, known as your estate, is distributed by the government after you die. And a will is your “testimony” after death for the judge to use in that courtroom to properly distribute your things according to your wishes. Everyone who dies, who owns anything of any kind must go through probate court after they die.

If you die without a will the probate court judge will determine how your things are distributed using a state statute. So it is always better to have a will than not, so your testimony exists for the judge after you are dead.

In most cases, Probate court takes about 9 to 12 months or longer to distribute your property, and your beneficiaries have to wait that entire time before they receive their inheritance. And this is one of the reasons Living Trusts exist – because a Living Trust creates a means of distributing your property to beneficiaries without Probate court involvement.

 

Living Trusts: Instructions to Carry Out your Wishes

You can think of a Living Trust like a contract that creates a treasure chest. This treasure chest is going to hold all your assets while you are alive and after your death. The Living Trust gives a trusted person (the Trustee) a key to this treasure chest, and a set of instructions, so they can distribute all of your assets after you die according to your specific wishes. This allows you to bypass the Probate Court, because you no longer need a judge to distribute your things – because your Living Trust does this for you.

This means it will only take a few weeks to 2 months for your assets to be distributed by your appointed trusted person to your beneficiaries. Everything will be all laid out, and no one will have to go to court or hire an attorney after you die – saving your estate and beneficiaries time, energy and money.

In summary – a Will is final testimony to a judge so a court can distribute your property when you die.   A Living Trust is a contract document that appoints a person you know and trust to distribute your things so you do not need the courts involvement.

 

Two Important Parts of a Complete Estate Plan

Even though the purpose of these two documents is different.  You want both a Will and a Living Trust as part of a comprehensive estate plan. The Living Trust ensures your beneficiaries do not have to wait to receive their inheritance, or have to hire a lawyer or deal with a confusing court system after you die.  Your Will exists as a “just in case” so your testimony exists after death to tell the judge that you want the Living Trust to control distribution of your assets.

Working with an experienced estate planning attorney will help you create this comprehensive estate plan.  Book a call today using the button below.

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 Washington 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.

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 often 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 Washington may want to have a trust to title their home in. If you have a trust, you will also need a pour over will that works together with your trust. Most people have a will and a trust in their estate plan.

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!