Which is Right for You, Will or Living Trust?
A living trust and a will are both estate planning documents, but they serve different purposes and have different characteristics. The major difference between the two is how they distribute assets after the death of the person who created them.
A living trust is a legal document (a contract, in fact) that allows a person (known as the trustor, grantor, or settlor) to transfer ownership of assets to a trustee, who will manage the assets on behalf of the beneficiaries named in the trust document. Upon the grantor’s death, the assets held in the trust are distributed to the named beneficiaries according to the terms of the trust document, without going through probate.
On the other hand, a will is a legal document that outlines how a person’s assets will be distributed after their death. Unlike a living trust, a will does not take effect until the person who created it (known as the testator) dies. Consider it like a “letter of instruction” to the court telling the court what you would like to have happen regarding your estate matters.
Upon the testator’s death, their assets are distributed to their beneficiaries according to the instructions in their will. The will must go through probate, a court-supervised process that validates the will and oversees the distribution of assets to the beneficiaries.
What Happens If I Die Without A Will Or Living Trust in Virginia?
If you die without a will or living trust, your assets will be distributed according to the laws of intestacy in the state where you reside. In Virginia, your assets will be distributed to your closest living relatives, such as your spouse, children, parents, or siblings, in a predetermined order of priority.
In the absence of any living relatives, your assets may go to the state. This is known as escheat, and it is a rare occurrence, but it is possible.
It is important to note that without a will or living trust, you have no say in how your assets will be distributed. Therefore, it is highly recommended that you create a will or living trust to ensure that your assets are distributed according to your wishes.
Is A Will Or Living Trust Right For Me?
Determining whether a will or living trust is right for you depends on your individual circumstances and preferences. Here are some factors to consider:
- The size of your estate: If you have a small estate with few assets and no complex estate planning needs, a will may be sufficient. However, if you have a large estate with multiple properties, investments, and other assets, a living trust may be more appropriate.
- Privacy: A will is a public document that becomes part of the public record, whereas a living trust is private and does not have to go through probate court, so it can provide greater privacy for your beneficiaries.
- Probate: A will has to go through probate court, which can be a lengthy and costly process. A living trust, on the other hand, avoids probate, which can save time and money.
- Incapacity planning: A living trust can provide for the management of your assets if you become incapacitated and unable to manage your affairs, whereas a will does not take effect until you die.
- Control over the distribution of your assets: A living trust provides greater control over the distribution of your assets, allowing you to specify when and how your beneficiaries receive their inheritance.
Consult with an Experienced Virginia Estate Planning Attorney
When deciding whether a will or living trust is right for you, it is important to consult with an experienced estate planning attorney to determine the best option for your specific needs and circumstances.
An experienced Virginia estate planning lawyer from our law firm can help you identify your estate planning goals (such as providing for your loved ones, minimizing taxes, or supporting a charitable organization) and then assist you with determining which option is best for your specific goals.
Call us today at (703) 553-2577 or use the contact form to arrange a consultation.
The information on this site is for general informational purposes only. The information presented in this site is not legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this site.