What’s the Difference Between a Will and a Trust and How Do I Know Which One Is Right For Me?

This is always one of the first questions I get as an estate planning attorney. The simple answer is some plan is better than no plan when it comes to estate planning. While there are benefits to having a living trust rather than a will, the goal is to have autonomy to determine who your assets go to upon your departure and both tools can accomplish that.

A California Will is a legal document that outlines your wishes for distributing your assets after you pass away. It functions as a roadmap for your loved ones, guiding them on how to divide your property and handle your affairs.

A California trust is another legal arrangement where you transfer your assets to a trustee and the trustee manages them on behalf of your beneficiaries; a living trust in particular, allows you to retain control of your assets during your lifetime and enables a seamless transfer of these assets to your beneficiaries upon your passing, bypassing the probate process.

So, what’s the difference between these documents? One of the biggest differences is a trust avoids probate! Probate is a time consuming and costly process that involves the court having to authenticate your will in order for the contents of the will to be distributed according to your wishes. A trust allows for a much smoother transition of your assets to your beneficiaries because it bypasses the formal court process and costly fees.

Another benefit of a trust is the flexibility and control you have as a grantor over how and when your assets will be distributed. A will only accounts for what happens to your assets at the time of your departure and does not allow for continued management. However, a trust, depending on the kind of trust, can allow for distributions while the grantor is still living. A trust allows you to specify conditions for distributions, age requirements, and designate a trustee to manage and distribute assets according to your instruction.

The last main difference between a will and a trust is privacy. While a will is subject to probate which is a public proceeding, the contents of your will (identities of beneficiaries and inventory of assets) will be accessible to the public. On the other hand, a trust and its contents will not be public knowledge since the distribution of the assets occurs outside of probate. You can rest assured that with a trust, the details of your assets and beneficiaries can remain private.

The primary difference between a will and a trust is that a trust avoids probate which can save a lot of time and money and give you more peace of mind about the distribution of your assets. Talking to an estate planning attorney to see which legal arrangement is right for your goals and circumstances is the first step. With the goal of using these tools to create generational wealth and protect your assets in mind, it’s important to remember that taking some action is better than taking no action at all!