Trusts vs. Wills
Discover the key differences between trusts and wills, and learn why choosing the right one is crucial for your estate planning.
What is Trusts vs. Wills?
Trusts and wills are both essential components of estate planning but serve different purposes. A will is a legal document that outlines your wishes regarding the distribution of your assets and the care of any minor children after your death. In contrast, a trust is a fiduciary arrangement that allows a third party, or trustee, to hold and manage assets on behalf of beneficiaries. Understanding the differences between the two is crucial because choosing the appropriate tool can significantly impact how your assets are managed during your lifetime and after your death. Trusts can often help avoid probate and maintain privacy, while wills are necessary to specify guardianship of minors. Selecting the right combination ensures a comprehensive and durable estate plan tailored to your unique needs.
