What's the difference between a will and a trust?

Wills and trusts are both tools for estate planning, but they function in different ways and at different times.

A Will (Last Will and Testament):

• When it works: It only goes into effect after you pass away.
• Purpose: It outlines who gets your property and assets, and it allows you to name guardians for minor children.
• Process: A will must usually go through a court process called probate, where the court oversees the distribution of assets according to your instructions. Because of this, the contents of a will often become a matter of public record.

A Trust:

• When it works: It can go into effect as soon as you create and fund it. You can set it up to manage your assets while you are alive, if you become incapacitated, and after you pass away.
• Purpose: You transfer ownership of your assets into the trust. You manage these assets as the "trustee" (or appoint someone else to do so) for the benefit of your chosen beneficiaries.
• Process: Assets held in a trust generally bypass probate. This can save time and money for your heirs, and trusts are typically kept private, meaning the details of your assets and distributions are not made public.

Key Differences Summary:

• Probate: Wills go through probate; trusts generally do not.
• Privacy: Trusts are private documents; wills are public records once filed with the court.
• Incapacity: Wills only address what happens after death; certain types of trusts can manage your affairs if you become unable to do so while you are still alive.

Choosing between them often depends on the size of your estate, your privacy preferences, and the complexity of your family situation. It is usually best to consult with an estate planning attorney to determine which option is right for your specific circumstances.