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 it can be expensive to probate. In many jurisdictions, under probate law, this is a legally binding document, allowing you to deliver your assets to a designated beneficiary or beneficiaries. Unfortunately, this generally does not happen until after the death of the person making the will. A probate executor carries out the distribution of your assets. After the creator dies, the will must go through a succession. During the succession, the court will decide if the will is valid. The court will then oversee the distribution of the assets. This can be a costly process because assets can be subject to inheritance taxes. When this is the case, the services of a probate attorney may be required.

With a will, one of the drawbacks is that it becomes a public record after the death of the creator, so everything related to the will is public knowledge. To manage the distribution of the assets there will be a guardianship or a power of attorney.

Trusts

A trust is more expensive to set up, but when there is a trust, it will generally allow beneficiaries to avoid probate costs. After a trust has been written, it can become effective at any time during an individual’s life by using a settlor to transfer the assets to the trustee to hold for the beneficiaries. When the creator dies, legalization is avoided. This is because the assets were transferred during the life of the settlor. The trust will continue to function even after the settlor dies.

With a trust, you will generally remain private and allow the trust beneficiaries to maintain confidentiality about the specific terms of the trust. Generally, 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 estate taxes. Depending on the applicable trust laws, the tax advantages available will vary from jurisdiction to jurisdiction.

When managing a trust, it may be done by a trustee or a settlor, but it will depend on how the trust was established. If the settlor administers the trust, they will generally specify who will administer it after they have passed away.

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 are unsure, speak with a probate attorney for legal advice on which one to establish for your particular situation.