Both legal documents offer a way to distribute estate assets when a person dies, but each is different in a variety of ways.

wills

With a will, it is cheaper to prepare but can be expensive to probate. In many jurisdictions, under probate law, this is a legally binding document that will allow you to hand over your assets to a designated beneficiary or beneficiaries. Unfortunately, this usually doesn’t happen until the person in the will dies. A testamentary executor carries out the distribution of his assets. After the creator dies, the will must go through probate. During the probate, the court will decide if the will is valid. The court will then oversee the distribution of the assets. This can be an expensive process because the assets may be subject to estate taxes. When this is the case, the services of a probate attorney may be required.

With a will, one of the drawbacks is that they become public record after the creator’s death, so everything about the will is public knowledge. To manage the distribution of assets there will be a guardianship or a power of attorney.

Trusts

Setting up a trust is more expensive, but when there is a trust, it will generally allow the beneficiaries to avoid probate costs. After you have a trust in writing, it can take effect at any time during a person’s life by using a settlor to transfer assets to the trustee to hold for the beneficiaries. When the creator dies, the succession is avoided. This is because the assets were transferred during the life of the settlor. The trust will continue to function even after the death of the settlor.

With a trust, you will generally remain private and allow the beneficiaries of the trust to keep the specific terms of the trust confidential. In general, having a trust can provide more tax benefits. In some jurisdictions, they will allow a certain amount of the trust assets to be transferred to the beneficiaries without requiring them to pay gift and inheritance taxes. Depending on applicable trust laws, the tax benefits available will vary from jurisdiction to jurisdiction.

When managing a trust, it can be done by either a trustee or a settlor, but it will depend on how the trust has been set up. If the settlor manages the trust, they will usually specify who will manage it after they have died.

In conclusion

Looking at all the facts, it seems that it is better if a trust is established to distribute the assets rather than using a will. If you’re not sure, talk to an estate attorney for legal advice on which one to set for your particular situation.