When it comes to leaving something behind for your family and other loved ones, there are many routes through which to direct your assets. The two most popular are wills and trusts, which are both, essentially, estate planning tools. If you want to learn more about how these legal documents differ and which is right for you, consider the following comparison.

The Basic Differences Between Wills & Trusts

What does each cover?

When you draft a will with an estate planning attorney, you’ll officially establish which family members, friends, and loved ones will obtain ownership of your property. This includes both monetary amounts and assets such as houses, vehicles, and even sentimental objects. This document also appoints an individual to ensure these specific wishes are carried out after your death.

A trust can be drawn up by an institution or an individual, and it establishes ownership of property to two types of beneficiaries. The first will have access to the property while they are alive, while the second has ownership of the remaining property after the first passes away.

When does each go into effect?

When you draft your “last will and testament” as part of your estate planning, you do so with the idea that it will be put into action after you die. In other words, you’ll be leaving money and assets that were once in your name to your survivors once you can no longer use or enjoy the property. When you draw up a trust, however, it goes into effect as soon as it's created.

After your passing, a will must pass through probate, during which the court supervises the distribution of your property. This process can put a substantial amount of wait time between your death and the distribution of your property, especially if survivors contest your wishes. Trusts do not have to go through probate, which speeds up the process and keeps it private.

What are the different types of each?

While there is only one type of will, there are three main options for trusts. A revocable living trust, the most common type, is set up by a grantor who puts their own property into the trust and can edit the terms as they please. Irrevocable living trusts are permanent, which means you can’t edit the terms or retrieve the funds you put into it. Testamentary trusts are created by someone who writes a will, and they don’t go into effect until that person passes away. After their death, an assigned individual—the executor of the estate—activates the trust during the probate process.

If you’re interested in setting up a will or a trust with an estate planning professional, get in touch with Castles Family Law of Brentwood, TN. This firm helps clients throughout Davidson, Rutherford, and Williamson counties take essential next steps in their lives, whether that comes in the form of divorce, adoption, or the drafting of a will. You can entrust attorney Lauren Wilson Castles to fight for your best interests as well as help you realize all available options. Call the firm’s office at (615) 804-6086 to set up a consultation.