Considering who your beneficiaries will be after you pass away is an important decision. However, so is the decision whether to use a living trust or a will to designate your heirs. While wills and trusts have many similarities, they also have several key differences. Understanding the nature of these options will help you determine which is best for your situation.

Wills

A will is a document that names who will receive your property and other assets after you pass away. However, depending on your life circumstances, it can also include additional instructions, such as who will take care of your children and how to pay off any taxes and outstanding debts. 

Wills typically name an executor who will see that the instructions are carried out. Though wills are simple to make, they do require witnesses. The document can be revised as your life and financial situation change. In a will, property left to children under the age of 18 must be managed by an adult. This property also passes through probate.

Living Trusts

A living trust is designed to manage your property both during life and after death. You can be your own trustee and name a successor for death or other forms of incapacitation without the need for court intervention. Trusts avoid conservatorship and offer greater protection from court challenges. Property in the trust doesn’t pass through probate, allowing more direct distribution to beneficiaries.

Living trusts require a notary public and only apply to the assets they contain. Items not included in the trust will be subject to probate. Because trusts require more active management than a will, they can be more time-consuming and costly.

If you need help drawing up a living trust or will, contact the Law Office of George N. Nam. Serving Oahu, HI, for over 28 years, this law firm provides personalized, timely assistance for your estate planning needs. To learn more about how they can help you, visit them online, or call (808) 487-9455 to set up a consultation with an attorney.