What is the difference between a Trust and a Will?

The biggest myth or misconception about Wills is that they allow you to avoid probate court. They don’t.

In fact, a Will is designed specifically to be submitted to the probate court to instruct the judge or magistrate as to your intentions.

It is only after the Will is submitted to probate court, that the process of appointing an executor begins and (depending on which state you live in), you may then have to deal with another 6 to 12 months of the court administration process at a minimum to deal with the back and forth between creditors and heirs-at-law.

It is only after the dust settles in probate court, when the executor can finally move forward and distribute your estate or whatever assets pass through probate to the beneficiaries you named in your Will.

And if anyone contests a matter, then the timeline and the costs associated with probate can become an absolute nightmare.  

So, how does a Trust fit into all this?

A Living Trust, unlike a Will, is designed to never go through probate. With a Trust, your intentions and wishes remain private (whereas the Will become a public document). There is no court process to appoint the administrator of your estate, because your Trust simply names the successor Trustee (or manager of the Trust) and that person or persons immediately step into your shoes without any hassle or delay.

The Trustee or manager of the Trust still need to make sure your instructions are followed, but they don’t require any public approval or authorization because the Trust document itself authorizes all the powers required to follow your wishes in a timely manner.

But there’s more.

Not only can a Trust allow you to avoid probate court, but it can also allow you to continue to protect assets for the benefit of your spouse and children long after you are gone. This includes protecting your children’s assets from divorce, bankruptcy, creditor, or other financial issues.

So, if your primary objective is to keep your property out of probate court and makes things easier for your family, then you want a Trust and not just a Will.

And that is the primary difference between a Trust and a Will.

Do you already have a trust, but aren’t sure how it works? I’d be happy to review it for you and answer any questions you may have.

Would you like to set up a trust? I’d be happy to help you create a trust that addresses whatever concerns you may have.

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