William Tucker, Wills and Trusts

While Wills and Trusts do have a lot of overlap, there are also several differences between the two. Ultimately, both are ways to say who will receive your assets. They just do it in different ways, and each has its own advantages and disadvantages.

One big difference between the two is in how and when they take effect. Wills don’t go into effect until you pass away, whereas a Trust is effective immediately upon signing and funding it.

It may be easier to think of a Will as a “simple” document. Wills allow you to:

Name guardians for kids and pets
Designate where your assets go
Specify final arrangements
While it is an easier process, the simplicity of a Will does come with some drawbacks. For example, Wills offer somewhat limited control over the distribution of assets. They also most likely have to go through some sort of probate process after you pass away.

A Trust is a bit more complicated, but can provide some great benefits. Trusts:

Offer greater control over when and how your assets are distributed
Apply to any assets you hold inside the Trust
Come in many different forms and types
Keep in mind that after you create a Trust, you also need to fund it by transferring assets to it, making the Trust the owner. This does make Trusts a little more complex to set up, but note that Trusts have one major benefit over Wills. They’re often used to minimize or avoid probate entirely, which is a huge plus for some people. This alone could more than justify the additional complexity of setting up a Trust.

Bill joined Hull Barrett in 1980 and is a senior partner in the Aiken office of the firm. He practices in the areas of estate planning, probate, real estate, and business/corporate law and has extensive experience on wealth transfer issues for individuals and owners of closely held businesses, the administration of decedents’ estates, as well as residential and commercial real estate transactions and small business transfers.

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