It’s easy to put off estate planning, especially if you’re not entirely sure how various arrangements will actually protect loved ones. Since life can be unpredictable, though, it’s wise to make plans sooner rather than later. Whether these arrangements should include a last will or trust—or both—will depend on your financial situation, family dynamics, and last wishes. Here’s how to decide.  

What Is a Last Will?

A last will and testament is a legally binding document in which you state simple wishes regarding your estate. For example, in a will, you can name an executor and bequeath property to beneficiaries. You can also establish guardianship for your children if they happen to be minors at the time of your passing.

Because wills must pass through probate, their contents essentially become public record. While you should still draft this document to name an executor and establish guardianship, you may want to use trusts to transfer property to loved ones to protect their privacy. 

What Is a Trust?

In the context of estate planning, a trust is essentially a fiduciary arrangement that requires the transfer of assets while you’re still alive. These assets will be held by a third party, known as the trustee, until you wish for them to be distributed.

Because the property is transferred prior to passing, it does not have to pass through probate. This can relieve a lot of the hassle for beneficiaries, who will be able to access their inheritances right away. Trusts also allow creators to implement strict conditions regarding the use of the assets they contain.

For example, if you set up a small trust for any pets that happen to outlive you, the trustee will ensure the funds are used solely for their care. You can also set up trusts that will not release the funds until the beneficiaries reach certain milestones—until they graduate college, for example, or turn 30. As such, trusts will let you maintain some control over how your loved ones use their inheritances. 

For help finalizing your estate planning arrangements, turn to Arndt Buswell & Thorn SC in Monroe County, WI. A full-service firm, they strive to build a lasting relationship with each and every client. For 25 years, their attorneys have been assisting with bankruptcy filings, personal injury claims, real estate transactions, and employment law disputes. To explore all their areas of expertise, visit their website. To request a consultation with a member of their estate planning team, call (608) 269-1200.