Estate planning is recommended for people of all ages and wealth levels. If something should happen to you, having your affairs in order will protect your interests as well as those of your loved ones. As you work with your family law attorney to put together your estate plan, one of the first major decisions you’ll make is whether you want a will or a trust.

Will

What It Is

A will is a legally binding document that outlines how you want your assets distributed, and your dependents cared for in case of serious illness or death. It’ll cover all of the property that’s solely in your name as anything jointly held with another person isn’t covered. A will also allows you to outline your funeral, burial, and cremation arrangements as well as name a guardian for your children or pets.

How It’s Administered

When the time comes to execute the will, it’ll pass through probate. This means that a court will determine whether the document is valid and oversee its administration. You can trust that a fair party will distribute your property the way you wished.

Trust

What It Is

A trust is a legal arrangement or fiduciary relationship, giving another party, such as an institution or individual, the power to handle your assets on behalf of your beneficiaries. It allows you to begin distributing your assets whenever you want – while you are alive, at the time of your death, or afterward. Trusts are more expensive to set up and must be actively managed, but they offer better control over your assets than a will does.

How It’s Administered

You can choose the person who’s given the authority to handle your estate, also known as a trustee. This could be a bank, your family law attorney, or a loved one. You can leave instructions for them on how you would like your assets divvied up. A trust keeps your estate private and avoids the waiting period during which assets are tied up in probate court.

If you’d like a family law attorney’s help deciding which is best for your situation, contact the legal team at Everett Cuskaden & Associates, ALC, in Honolulu, HI. This family-owned law firm has over 35 years of experience and assists Oahu residents with a variety of family law legal matters, including divorce, child support, trusts, and custody. View their areas of practice online, or call (808) 545-1331 to schedule a consultation.