Wills and trusts are both estate planning tools that can be used to distribute your assets after your death, but they serve different purposes and have distinct characteristics. Here are the key differences between a will and a trust:

Nature and Purpose:

A will is a legal document that outlines how you want your property and affairs to be handled after you die and its primary purpose is to provide instructions for the distribution of assets, appoint guardians for minor children, and name an executor to oversee the estate while a trust is an arrangement that transfers ownership of your property to a trustee, who manages it for the benefit of one or more beneficiaries.

A will takes effect only after your death, while a trust can be effective during your lifetime and after your death. You can use a trust to control when and how your assets are distributed to your beneficiaries, such as after they reach a certain age or milestone. Trusts can serve various purposes, including asset management, providing for minor children, minimizing estate taxes, and controlling the distribution of assets over time.

A will can include instructions for matters such as guardianship of minor children, funeral arrangements, and charitable donations. A trust cannot include these provisions, but you can use a will and a trust together to cover all your estate planning needs.

Probate:

Wills generally go through the probate process, which is a court-supervised proceeding to validate the will, pay debts and taxes, and distribute assets to heirs. The probate process is a matter of public record, and it may involve court fees and delays while Living trusts can help avoid probate for assets held within the trust. Assets held in a trust can be distributed directly to beneficiaries without court supervision.

A will must go through probate, which is a court process that validates your will and oversees the distribution of your estate. A trust can avoid probate, which can save time, money, and privacy for your heirs. Testamentary trusts, created through a will, may still go through probate.

Privacy:

Wills are typically part of the public record during probate, and the details of the estate, beneficiaries, and assets become public whereas living trusts, being private arrangements, can provide more privacy as the details are not part of the public record.

Flexibility:

Wills are flexible and can be updated through amendments or replaced entirely by a new will while trusts also offer flexibility but may involve more complexity in their creation and management. They can be amended or revoked, and various types of trusts serve different purposes.

Cost:

The cost of creating a will is often less expensive than setting up a trust whereas the initial cost of establishing a trust may be higher than creating a will, but it can potentially save on probate costs in the long run.

The choice between a will and a trust depends on individual circumstances, goals, and preferences. Consulting with legal professionals can help individuals determine the most suitable estate planning strategy for their specific needs.