Understanding the Difference between a Trust and a Will
June 26, 2023
Understanding the Difference between a Trust and a Will
When it comes to estate planning, two main documents come to mind; a trust and a will. As a legal professional who helps Houston residents with estate planning, I often receive questions from clients, wondering which of these documents is right for them. While both of these documents help individuals achieve their estate planning goals, there are quite a few differences between the two. In this blog post, I will cover the key differences between a trust and a will.
A trust is also a legal document that outlines how a person's assets will be distributed after they pass away. However, unlike a will, a trust takes effect while the individual is still alive. A trust also allows the individual to transfer ownership of their assets to the trust and appoint a trustee who will manage the assets on their behalf. This person can be the individual or a trusted third party. Furthermore, a trust can provide for the management of the individual's assets in case of incapacity or assist in avoiding probate.
Probate is the legal process of transferring ownership of assets to beneficiaries after an individual passes away. If you have a will, your assets will go through probate to ensure that your wishes are carried out. However, if you have a trust, your assets can still be distributed based on your wishes without going through probate.
Wills are flexible in the sense that they can be updated or revised at any time during an individual's life. However, trusts provide greater flexibility. The individual can make changes to the trust at any time, even after they become incapacitated, without the need for court intervention.
Wills are matter of public record, which means anyone can see them, including the value of your assets and your beneficiaries. On the other hand, trusts are not required to be filed with the court, allowing for greater privacy.
1. What is a will?
 A will is a legal document that outlines an individual's wishes for what happens to their assets after they pass away. A will allows the individual to select an executor or personal representative who will oversee the distribution of the assets and ensures that their wishes are carried out. In addition, a will can include provisions for guardianship of minor children, designate someone to manage your assets if you become incapacitated, among others.2. What is a trust?
A trust is also a legal document that outlines how a person's assets will be distributed after they pass away. However, unlike a will, a trust takes effect while the individual is still alive. A trust also allows the individual to transfer ownership of their assets to the trust and appoint a trustee who will manage the assets on their behalf. This person can be the individual or a trusted third party. Furthermore, a trust can provide for the management of the individual's assets in case of incapacity or assist in avoiding probate.
3. Probate
Probate is the legal process of transferring ownership of assets to beneficiaries after an individual passes away. If you have a will, your assets will go through probate to ensure that your wishes are carried out. However, if you have a trust, your assets can still be distributed based on your wishes without going through probate.
4. Flexibility
Wills are flexible in the sense that they can be updated or revised at any time during an individual's life. However, trusts provide greater flexibility. The individual can make changes to the trust at any time, even after they become incapacitated, without the need for court intervention.
5. Privacy
Wills are matter of public record, which means anyone can see them, including the value of your assets and your beneficiaries. On the other hand, trusts are not required to be filed with the court, allowing for greater privacy.
In summary, both a trust and a will are essential estate planning documents, but the ultimate decision depends on individual circumstances. Wills are suitable for individuals who have smaller estates and straightforward plans, while trusts work better for larger estates and individuals looking to manage their assets while they are still alive. It is always advisable to consult with a trusted legal professional to help determine which document is suitable for your unique circumstances. At David A. Munson, PC, we are dedicated to helping Houston residents with their estate planning needs. Contact us today to learn more about how we can assist you in creating a comprehensive estate plan.
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