When it comes to planning for the future, one of the biggest decisions you’ll face is whether to create a will, a trust, or both. Each option plays a crucial role in estate planning, but they serve different purposes and offer distinct benefits. As a wills and trusts lawyer in NH, I often help clients navigate these choices to ensure their assets are protected and their loved ones are cared for.
In this article, we’ll break down the key differences between wills and trusts, the advantages of each, and how to determine which is the best fit for your unique situation.
What Is a Will?
A will is a legal document that outlines how your assets should be distributed upon your passing. It allows you to:
- Specify who will inherit your property
- Name guardians for minor children
- Appoint an executor to oversee the distribution of your estate
Pros of a Will:
✅ Simplicity: A will is generally easier and more affordable to set up than a trust.
✅ Allows You to Name a Guardian: If you have young children, a will enables you to designate a trusted person to care for them.
✅ Flexibility: You can revise your will as circumstances change, ensuring your wishes remain up to date.
Cons of a Will:
❌ Probate Process: A will must go through probate, a court-supervised process that can be time-consuming and expensive.
❌ Public Record: Since probate proceedings are public, your estate details may be accessible to others.
What Is a Trust?
A trust is a legal entity that holds and manages your assets during your lifetime and after your passing. The most common type is a revocable living trust, which allows you to retain control of your assets while ensuring a smooth transition to your beneficiaries.
Pros of a Trust:
✅ Avoids Probate: Assets placed in a trust bypass the probate process, allowing for faster and more private distribution.
✅ More Control: You can set specific conditions on how and when your assets are distributed to beneficiaries.
✅ Protects in Case of Incapacity: If you become incapacitated, a trust ensures that a designated trustee can manage your affairs without court intervention.
Cons of a Trust:
❌ More Complex to Set Up: Establishing a trust requires more effort and upfront costs than a simple will.
❌ Requires Proper Funding: If you don’t transfer your assets into the trust, they may still be subject to probate.
Will or Trust: Which One Should You Choose?
The right choice depends on your personal circumstances. Here’s a general guideline:
- If you have minor children and need to designate guardians, a will is essential.
- If you want to avoid probate and maintain privacy, a trust is a better option.
- If you have a smaller estate and simple distribution wishes, a will may be sufficient.
- If you have significant assets, real estate in multiple states, or specific inheritance conditions, a trust offers greater flexibility and protection.
Many individuals choose to have both a will and a trust to ensure comprehensive estate planning. A trust manages assets efficiently, while a will covers any remaining property and appoints guardians for minor children.
Consult Our Wills and Trusts Lawyer in NH
Estate planning is not one-size-fits-all. The best way to determine whether a will or trust is right for you is to speak with an experienced lawyer in NH. At Beaupre Law, we take the time to understand your goals, explain your options, and create a personalized plan that protects your legacy.
If you’re ready to start planning for the future, contact us today for a consultation. Let’s ensure your wishes are honored and your loved ones are taken care of.