Both a will and a trust serve different purposes, and which one is better for an individual depends on their specific circumstances and goals.
A will is a legal document that specifies how an individual’s assets will be distributed after their death. It also allows an individual to name an executor, who is responsible for carrying out the instructions in the will and distributing the assets according to the instructions. A will becomes effective only after the individual’s death, and the assets must go through probate, which is a court-supervised process of transferring assets to the beneficiaries.
A trust, on the other hand, is a legal arrangement in which a trustee holds and manages assets for the benefit of one or more beneficiaries. A trust can be created during an individual’s lifetime or upon their death. Unlike a will, a trust can take effect while the individual is still alive. Trusts can be used for a variety of purposes, such as managing assets for minors, providing for disabled beneficiaries, or avoiding probate.
Some people may prefer a will because it is a simpler and more straightforward way to transfer assets after death. Others may prefer a trust because it allows them to manage and distribute assets during their lifetime, and can also avoid probate and provide more privacy. It’s a good idea to talk with an estate planning attorney to determine which option is best for you and your situation.
