If you’re exploring the estate planning process, you’ve likely encountered two tools: wills and trusts. Both of these tools can help you distribute assets to your loved ones and chosen beneficiaries, but they work in different ways. Before you can decide if a trust is better than a will for your situation, it’s helpful to understand exactly how each tool works. Here’s what your Illinois estate planning attorney wants you to understand before you start creating your plan.
What Is a Trust?
A trust is a legally binding way to transfer specific assets—like a family home, investments, and other financial assets—to your loved ones at a designated time, usually when you pass away. Trusts are overseen by a trustee who is responsible for administering the distribution of the assets held in the trust when you pass away. It’s their job to ensure that each person you appoint as a beneficiary receives the assets you allocated to them.
Think of a trust as a way to oversee assets and protect your loved ones from having to deal with the hassle of a costly probate process when you pass way.
What Is a Will?
A will is a document that outlines your final wishes. It can provide guidance on the type of funeral you want, who you want to have guardianship of your children or pets, how assets of all types will be divided if they’re not held in a trust, and other similar factors.
Your will can be as detailed or as simple as you want it to be. Wills are typically regarded by the state as valid legal documents and should be used to determine the distribution of assets when you pass away. Wills don’t allow your loved ones to avoid probate in all cases, which can make inheriting assets more expensive for them.
How to Decide Between a Will and a Trust
Ultimately, the decision to use a will or a trust is a matter of personal preference. However, the more complicated your estate is—and the more assets you’re trying to allocate to your loved ones—the more complicated a will can become.
Think about the nature of your estate. If you have tons of assets that you want to leave to your loved ones, opening a trust may be a good choice. Doing so can help your loved ones avoid probate with those assets, which may save them money and help them take possession of those assets faster.
If your estate is fairly simple, and you’re not worried about leaving assets to multiple individuals, a will may be adequate. Keep in mind that you’ll want to have a will in place even if you establish a trust. Your will outlines your final wishes in a way that a trust simply can’t.
Work With an Illinois Estate Planning Attorney
Both wills and trusts can help you look out for your loved ones and avoid leaving the distribution of your estate up to chance. But creating wills and establishing trusts isn’t something you should do on your own. Instead, work with an experienced Illinois estate planning attorney from the very beginning.
When you work with an attorney, you’ll have access to an expert who can help you every step of the way. They’ll draft your will and trust agreements, help you determine which assets should be distributed and where, and can help you create a comprehensive plan that looks out for your loved ones’ best interests. And as your situation changes over time, they can help you update your documents, so everything is as accurate as possible at all times.
Schedule a Consultation Today
If you’re ready to start creating an estate plan that works for your needs and goals, don’t wait. Contact Legacy & Life Law Firm to schedule a consultation. Our team can help with everything from creating simple drafts of your will to developing a comprehensive estate plan.