Wills and trusts are powerful legal documents that allow you to decide what happens to your assets after you’ve passed. While both strategies share similarities, some differences make one option better than the other. Understanding the distinction between wills and trusts will help you make the right choice, protecting your legacy and loved ones.

Wills vs. Trusts

Privacy

Wills are a matter of public record, so anyone can request a copy of your estate plan after it’s filed. However, the contents and names of beneficiaries of living trusts aren’t publicly available, making them a popular choice for families that value privacy.

Empowering Those You Trust

Trusts are designed to allow a trustee to hold, control, and manage the assets of the grantor (the person who created the trust), during the grantor’s lifetime, or while incapacitated, and his or her death. A will, on the other hand, comes into play only after the person who created the will has died. In both a will and a trust, you can name a trusted person to manage your assets, and entrust that person to carry out the instructions in your will or trust. 

How Assets Are Transferred

If a person passes away with a will, the estate will likely go through probate. Probate is the court process involving cataloging the estate, paying debts, and distributing assets to their beneficiaries of the decedent. Depending on the complexity of your estate, probate can take months to complete. Heirs may have to go through the probate process whenever the decedent owned property, which could involve multiple states and courts.

A trust, on the other hand, avoids probate. Because all property passing through a living trust does not have to go through probate, it can be distributed to beneficiaries after the death of the grantor without any court fees and interference (or guidance) from the court. 

Control Over Your Estate

Wills allow beneficiaries to receive their share of your wealth immediately or as soon as they are of legal age. A trust allows you to place conditions on an inheritance, ensuring the wealth you’ve built will be used wisely. For instance, you may require that your children only receive their share when they turn 30 or direct that it can only be used to buy a house or pay for college.

Estate planning can be a complex process, but a skilled attorney can help guide you through your options and ensure your final wishes are respected. With over 20 years of experience, the Law Office of Dawn N. Murata LLLC, has handled wills and trusts for families throughout Hawaii. Their attorney will take the time to design an estate plan that meets your needs. Send a message online or call their Lihue office at (808) 245-4572 to learn more about wills and trusts or schedule an appointment.