Should I Choose a Will or Living Trusts?

One of the interesting things about being an estate attorney is that we are front line witnesses to numerous American success stories. People work hard their whole lives, unsung, unseen, except by their families (and by us). It’s so important to stick the landing when it comes to your legacy. And that’s where estate planning comes in. The goal of estate planning is to make sure your belongings are distributed according to your wishes and in a timely manner after you die. The right estate planning strategy for you depends on your individual circumstances.

For some people, a living trust can be a helpful estate planning tool, while for others, a will is a better option. Then again, for some estates a living trust and will can be used together for a more comprehensive estate plan.

But, before we address if you should choose a will or living trust for your estate plan, let us first understand what a will and a living trust are.

What is a Will?

A will is a testamentary document (“testamentary” because it is given effect after you die) that directs how your property will be distributed after you die. You can also use a will to appoint a guardian for your minor children. A will is a simple, effective, and extremely flexible estate planning document that can be changed during your lifetime, but it only takes effect after you pass away.

What is a Living Trust?

A living trust, on the other hand, is a contract. A trust can provide for the management of your property both during your lifetime and after your death. If you are the trustee (the person chosen to manage the trust), the trust will have a successor trustee to take over when you pass away or become unable to handle your affairs. One of the significant advantages of a living trust is that it can help you avoid probate, a legal process that ensures your will is valid and your assets are distributed as intended. Probate can be time-consuming, expensive, and public, but a living trust can help you bypass all of this.

However, few as they are, a living trust comes with its own set of drawbacks. First, it is more costly to set up than a regular will because it is more complicated to set up properly. Also, a living trust only controls the assets that you transfer into it. If you don’t fund the trust properly or forget to transfer some assets into the trust, they won’t be covered by the trust, and probate might still be necessary. You have to “stick the landing” in order to get the full benefit of having a trust.

Will vs. Living Trust Considerations

To determine whether a living trust is right for you, consider these questions: Is there an expedited or simplified probate option in your state for estates below a certain value? If so, a will might be suitable. Also, ask yourself if you will actively manage your estate plan and transfer assets to the trust if you choose to have one.

Both a will and a living trust can achieve similar goals, but a trust allows you to fulfill other objectives that a will cannot. For example, a trust is helpful if you want to name your minor children as beneficiaries of your estate. In this case, a trust can ensure the funds are managed by a trustee instead of a court-supervised fiduciary, and allow you to specify when your children will receive their inheritance with more flexibility than under a costly and burdensome probate administration.

Furthermore, a living trust can help you avoid probate and plan for the possibility of incapacity, which a will cannot do. Nevertheless, it is essential to weigh the advantages of a living trust against the costs and efforts involved in setting up and managing the trust.

Consult with an Experienced Virginia Estate Planning Attorney

Estate planning is a critical step in ensuring your wishes are fulfilled and your loved ones are taken care of after you are gone. Whether you are considering a will or a living trust, it is essential to weigh the benefits and costs carefully.

Remember, everyone’s situation is different, and there is no one-size-fits-all estate planning solution. Your estate plan should be tailored to meet your unique needs and estate planning objectives.

If you are uncertain about whether a will or living trust is best for you, a qualified estate planning attorney can provide personalized guidance based on your specific circumstances. Contact our law firm today at (703) 553-2577 or use the contact form to schedule a consultation with an experienced Virginia estate planning attorney, and let’s discuss your estate planning goals.

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.