Wills Versus A Trust—Which Is Right For You

When creating legal documents, it's important to know which ones will work for your needs. One of the more confusing options available to individuals and couples happens when they go to an estate plan. Estate planning basically lays out everything for those you leave behind. It can include your asset distribution, how you care for minor children, how you want your debts paid, and more. If you don't outline these things, those you leave behind will have no way of knowing what to do. This can become a great burden to your family.

With estate planning, there are two primary legal documents to choose from. You can have both, however, but if you're looking for a more streamlined approach to estate planning, picking one is usually the best option. Let's review what the benefits of these documents are and why you should consider visiting your estate attorney.

One Avoids Probate

Probate is a very public process. Anyone can see your affairs, assets, and debts. If you're looking to keep things private and in the family, trust is the appropriate document for you. A trust bypasses probate altogether. A will, though it may seem like it's supposed to avoid probate, is still going to have to go through the process. Well, a will outlines your assets and how you want them distributed; they have to be gone over in probate.

One Lessens Taxes

For tax purposes, a trust is one of the best estate planning services you can utilize. But why? When you create trust, you're essentially putting your assets into a holding situation. When assets are distributed from a trust, taxes can be significantly reduced for the recipient. To learn more about taxes and how they work with estate planning documents, it's wise to speak to an estate planning attorney. In general, with a will or trust, some taxes can be avoided, like inheritance tax for gifts or items left to your spouse.

One Is and Maintains Privacy

Probate is a public process. If you're a private person and don't want your business on display, such as who you owed money to or where you would like your assets distributed, you'll want to choose a trust over a will.

One Isn't Contestable.

Would you like the assurance that your final wishes aren't being questioned? The best way to do that is to choose a legal document that isn't contestable. A will is, at the core, a contestable legal document. A trust, on the other hand, is not.