Four Advantages of Trusts Over Wills in Estate Planning

Rachel Wilson

Rachel Wilson with Nest Estate planning

When planning your estate, the choice between a will and a trust is pivotal, offering distinct benefits for the management and transfer of your assets. While both are valuable tools in estate planning, incorporating a trust alongside your will can address certain limitations presented by will-based planning. Here are four compelling reasons to consider a trust in your estate plan:

1. Probate Avoidance: Unlike wills, a living trust bypasses the probate process, allowing for the direct transfer of assets to your heirs. Probate can be lengthy, public, and costly, but a properly funded trust eliminates the need for court intervention, saving significant time and expense.

2. Controlled Asset Distribution: Trusts grant you precise control over the distribution of your assets. You can dictate terms for disbursement, such as age milestones or specific achievements.  A trust can ensure responsible inheritance management by safeguarding your estate from young beneficiaries who may not be savvy money managers and from beneficiaries' potential creditors.  

3. Enhanced Privacy: A will becomes public record once it enters probate, exposing your estate's details to potential scrutiny. A living trust, however, maintains privacy, keeping the distribution of assets and terms of your estate confidential.

4. Incapacity Planning: Wills cover asset distribution after death but offer no protection if you're incapacitated. A living trust can appoint a trusted individual to manage your affairs if you're unable to, avoiding the need for a court-appointed guardian.

While a will is a fundamental component of any estate plan, combining it with a trust can significantly enhance your plan's effectiveness, offering a comprehensive approach to asset management and protection. Consultation with a dedicated estate planning attorney can help you navigate these options, tailoring a plan that fits your unique needs and ensures your legacy is preserved according to your wishes.