While almost everyone should have a will, not everyone needs a trust. However, trusts can provide certain benefits that a will alone cannot.
One of the potential benefits of a trust is privacy. A will becomes a matter of public record once it is filed with the probate court, and anyone can access the information in the will.
In contrast, a trust is a private document that is not filed with the court, and the details of the trust’s assets and beneficiaries are not usually made public. This can be an important consideration for people who value their privacy or want to keep their affairs confidential.
Trusts can also provide flexibility in how assets are managed and distributed.
For example, a person may create a trust that allows for the gradual distribution of assets to beneficiaries over time, rather than all at once. Trusts can also include specific instructions on how assets should be managed and invested, and can name a trustee to oversee the trust and ensure that its terms are carried out.
Another benefit of a trust is that it can help avoid probate for many types of assets. For example, if a person places their home or vehicle in a trust, these assets can pass directly to the named beneficiaries without going through probate. This can be a significant advantage, as probate can be a time-consuming and expensive process.
It’s important to note that creating a trust can be more complicated and expensive than creating a will, and may not be necessary for everyone. However, for those who value privacy, flexibility, and the ability to avoid probate, a trust can be a useful estate planning tool. It’s best to consult with an experienced estate planning attorney to determine whether a trust is appropriate for your individual circumstances.
Trusts also make it simpler during periods of incapacity– a trustee can designate a successor to manage the assets held in the trust before they die, and without court intervention. Wills do not accomplish this at all– as the Will only becomes effective upon death.