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Wills vs Trusts: Understanding Your Options Before It’s Too Late

When it comes to estate planning, many people know it’s important but still delay starting the process. Often, this hesitation stems from confusion about estate planning options like wills and trusts—or the belief that there’s always more time.

The truth is, having a plan in place protects your loved ones and ensures your wishes are honored. Whether you choose a will, a trust, or both, understanding the differences between these tools is the first step toward creating a comprehensive estate plan. Let’s take a look at some scenarios to better understand how each option works.

Scenario 1: Passing Away Intestate

Dying intestate means you pass away without a will or trust. In this case, the court steps in to determine what happens to your accounts and property. This process, called probate, can be time-consuming, costly, and public.

What Happens in Probate:

  • Court-Controlled Decisions: State law determines who inherits your assets, typically prioritizing a surviving spouse, children, or other close relatives.
  • No Protections for Heirs: Adult children inherit their share immediately. For minors, a court-appointed guardian manages their inheritance until they come of age—often with no safeguards against squandering or creditors.
  • Public Disclosure: Probate records are public, meaning anyone can access details about your assets, debts, and beneficiaries.
Bottom Line: Without an estate plan, state laws and the court decide how to distribute your assets, who manages your children’s inheritance, and even who raises them if they’re minors. This may not align with your wishes.


Scenario 2: Dying with a Will

A will provides clear instructions about how you want your assets distributed and who you want to manage your affairs. However, assets governed by a will still go through the probate process.

Benefits of Having a Will:

  • Control Over Asset Distribution: A will allows you to name specific beneficiaries and dictate how and when they receive their inheritance. For instance, you can set up a testamentary trust to provide financial oversight for your children until they reach a certain age.
  • Guardianship Nominations: A will lets you nominate guardians for your minor children, ensuring the court considers your wishes when making a decision.
Bottom Line: While a will gives you more control than dying intestate, it doesn’t avoid the probate process, which remains public and subject to court oversight.

Scenario 3: Creating a Trust

A revocable living trust offers the most flexibility and privacy in estate planning. Unlike a will, assets owned by a trust bypass probate entirely, allowing for a smoother transition of property.

Key Advantages of a Trust:

  • Avoids Probate: Assets owned by the trust are not subject to probate, keeping your financial matters private.
  • Greater Control: A trust lets you set detailed terms for how assets are managed and distributed. For example, you can ensure your children receive their inheritance gradually, protecting it from mismanagement or creditors.
  • Successor Trustees: You appoint a successor trustee to manage the trust if you become incapacitated or pass away, ensuring continuity without court intervention.

A Word of Caution:

For a trust to work properly, it must be funded. This means retitling assets in the trust’s name or naming the trust as a beneficiary where applicable. Any assets not included in the trust may still go through probate.

Bottom Line: A trust provides privacy, flexibility, and control over your assets while avoiding the delays and costs of probate. However, proper setup and funding are crucial for it to work as intended.

Why Choose a Will or Trust?

Every family’s situation is unique, which is why understanding the differences between wills and trusts is so important. A will provides a clear roadmap for how your assets are distributed and ensures your children are cared for, while a trust offers added privacy, control, and flexibility.

No matter which option you choose, having a plan in place helps your loved ones avoid unnecessary stress, delays, and costs during an already difficult time. By tailoring your estate plan to fit your needs, you can protect your family’s future and ensure your wishes are honored.

Ready to Take the Next Step?

At Williams Starbuck, we take the guesswork out of estate planning options. Whether you need a will, a trust, or a comprehensive plan that includes both, our team will guide you every step of the way.

Don’t wait until it’s too late—contact us today to start creating an estate plan that works for you and your loved ones.