Should you have a will or a trust?

On Behalf of | Aug 5, 2022 | Estate Planning

All Arkansas adults can benefit by planning for the future and protecting their beneficiaries. While you begin the process of estate planning, you might wonder if you should have a will or a trust and which option is better.

Is a will or trust better?

Wills and trusts are both options that can help you with your estate planning. A trust can avoid a long, tedious probate process that your estate goes through after you pass away and allow your heirs to get what’s theirs faster. A will also provides for the disposition of your assets, but additionally allows you to appoint a guardian for your children should you pass away while they are still minors.

Whether one of these legal options is better than the other depends on the situation. However, a will can be contested if a family member objects to anything included in its terms. Certain trusts can be changed while others cannot be changed after they go into effect.

What are the differences between wills and trusts?

There are notable differences between wills and trusts. If you are considering having one versus the other, it’s important to know how they differ.

A will goes into effect after you pass away. While it doesn’t mean that your estate completely avoids probate, the process can be faster with a will. Wills are also straightforward and affordable depending on the size of your estate.

Trusts go into effect immediately after they are signed and funded. They can protect assets and property from probate and protect you if you become incapacitated.

A trust is also private but costs more than a will and is more complex in comparison. However, they are rarely contested.