When it comes to estate planning, both wills and trusts are essential documents that can help protect your assets and your wishes. Most notably, these tools help establish the beneficiaries that can rightfully inherit specific pieces of your property upon your passing. But while these plans may work similarly, they each offer different pros and cons. If you’re looking to preserve your estate, here are a few major differences between wills and trusts that you should know.

Wills

Prepared by a skilled attorney, a will is a document that is legally signed under the presence of a witness. This resource details how your assets shall be divided between beneficiaries—such as family members, friends, and charitable organizations.

When you create a will, you’ll also name a trusted individual to serve as your executor. Upon your death, the executor shall be responsible for carrying out the terms of the will—such as by making sure property gets into the right hands.

Keep in mind that even if assets are listed in a will, they must still be processed through probate court if they hold a collective value greater than $5000. This routine process involves a court review of all assets and supporting documents to ensure they are bequeathed to the appropriate parties.

Beyond asset distribution, wills can also achieve a few other important goals. For example, if you are a parent of a minor, you may use this document to name a guardian. You might also use a will to provide instructions on how to handle digital assets—such as social media accounts.

Trusts

A living trust is typically more complicated than a will and can require more time and money to create. However, these documents can offer unique advantages over wills.

The main advantage of a trust is that it allows assets to be distributed without going through probate. This may be preferable if you want to save your family from court procedures or keep these affairs private. A trust can also include specific instructions on how assets will be handled—such as by providing funds to a child in installments throughout their life rather than all at once.

While you are alive, you can act as your own trustee—or the person who manages the terms of the trust. However, you’ll also need to name a successor trustee who can take on these responsibilities if you die or become incapacitated.

As an experienced estate lawyer in Cincinnati, OH, Lance S. Cox, Attorney at Law is a leading resource for those looking to plan for the future with confidence. With a deep understanding of state laws, this attorney can help you plan wills and trusts to fit your specific wishes, as well as advise on ways to minimize legal complications and tax burdens. To learn more about these estate planning services, visit the law office online or call (513) 528-6000.