Estate Planning
A plain-English guide to two of the most common estate planning tools.
"Should I have a will or a trust?" is one of the most common estate planning questions. Both help direct what happens to your assets, but they work differently. Here's a general overview to help you think it through.
A will is a document that states how you want your assets distributed after your passing and who you want to carry out those wishes. It can also name guardians for minor children. Most adults benefit from having a valid, up-to-date will in place.
A trust is an arrangement that holds assets and sets out how and when they are passed to the people you choose. Depending on how it's structured, a trust can offer more control over timing and conditions, and it may help your estate avoid certain steps that a will alone would require.
The right choice depends on your goals, your family situation, and the nature of your assets. Some people are well served by a straightforward will; others benefit from a trust, or from a combination of tools working together. There is no one-size-fits-all answer.
A complete plan usually involves more than a will or trust. Powers of attorney and healthcare directives let trusted people make financial and medical decisions on your behalf if you are ever unable to. These documents are an important part of planning for the unexpected.
An estate plan should reflect your life as it is now. It's wise to review your plan after major events — marriage, divorce, the birth of a child, a death in the family, or a significant change in your assets — to make sure it still says what you want it to say.
Before discussing documents, identify the people and decisions the plan should address. A practical inventory can include family members and beneficiaries, real estate, financial accounts, business interests, insurance, digital assets, existing documents, and the people who might serve in fiduciary roles.
Asset ownership and beneficiary designations can affect how a plan works. Bring existing wills, trusts, deeds, and beneficiary information so the documents can be considered together.
Official sources are provided for reference. Court procedures, statutes, forms, and local instructions can change.
Note: This article is general information, not legal advice, and does not create an attorney-client relationship. For guidance about your specific situation, please contact us.
