If you’ve ever considered an estate plan, chances are, you’ve heard of a will. You’ve probably heard of a trust too. But, if you are like most people, you don’t know the difference between the two. We get asked this questions every day when we meet new clients. It is an important distinction to know when you’re making a plan.

The truth is that there are a lot of similarities. Both documents help you dispose of property at your death. Both a will and trust can dictate things like, who will get your house or cash assets, after your passing. What is important is to know the differences.

PROBATE– If you have a will and your assets exceed $150,000, before things are distributed to your loved ones, your estate will still go through probate. This can be costly and delay the distribution to your beneficiaries. On the other hand, a trust will allow you to distribute assets immediately the way you choose without court involvement, and less time and money.

INCAPACITY – A will does not protect you during incapacity. For example, if you own a house with a spouse and one of you becomes incapacitated, you cannot just sell your house if you only have a will. You will need to go to court and get a conservatorship over the incapacitated spouse. With a trust, the spouse with full capacity has ability can sell the house without the court’s involvement.

PRIVACY – If privacy is a concern, it is important to know that there are significant differences between a will and a trust. A will is open to the public, so all your private information becomes available for anyone to see. A trust, on the other hand, is completely private, and will not disclose its assets, beneficiaries or the distribution they receive.

While a will definitely is a good planning tool in certain circumstances, most of the time, a living trust is a better option for our clients. If you’d like to discuss which option would best suit your needs, feel free to get in touch. We’d love to hear from you.

Glendale Location

616 E. Glenoaks Boulevard, Suite 203

Glendale, CA 91207

Sherman Oaks Location

15303 Ventura Boulevard, Suite 900

Sherman Oaks, CA 91403