Wills and trusts are valuable estate planning tools that help create the legacy you want to leave your loved ones at death. They achieve this common goal in very different ways, however. Below, learn more about some of these differences to start designing an estate plan that best protects your family and assets.

Wills

In a will, you nominate an individual—called an executor—to handle and oversee probate proceedings, a legal process through which a will's validity is verified, estate debts are paid, and assets are distributed. A will allows you to determine how your assets are divided and to whom. Wills become active only on the death of the testator, and all must go through probate.

The property and assets in a will, which are owned by the testator(s) in their name(s) alone, are distributed according to the provisions stipulated in it. Wills also offer some flexibility if you want to incorporate specific plans and provisions for the guardianship and care of minor children. In addition, wills are a matter of public record.

Trusts

Trusts are estate planning arrangements in which a trustor places ownership of specified assets and real estate into a trust now. At death, ownership of the trust passes on to the beneficiary named.

Trusts are active when the trustor is still living. Property is technically owned by the trust itself, which allows it to avoid probate. In most situations, a trust has two sets of beneficiaries. One set receives payouts from the trust when the trustor is still alive, and the other receives what remains when the trustor dies.

Although a will covers all types of assets owned by the testator, a trust covers only the specific property held in it. Another critical difference between wills and trusts is confidentiality. The details of a trust remain private.

To explore wills and trusts in more detail, consult an attorney at Andrews & Pontius, LLC. Their legal team has been serving residents of Ashtabula County, OH, since 1999. They offer representation in estate planning, personal injury claims, family law cases, criminal defenses, and other legal proceedings. They’ll work with you to design an estate plan that meets your needs and goals. Call (440) 998-6835 to schedule a consultation, or visit them online to learn more about wills, trusts, and probate.