When it comes to preparing for the future, choosing the right tools to protect your assets and provide for your loved ones is crucial. Trusts and wills are two of the most common estate planning documents, but they serve different purposes and offer unique advantages. Understanding the differences between them is one of the estate planning essentials everyone should know. At G.W. Sherwold Associates Inc., we help clients navigate these choices with clarity and confidence.
What is a Will?
A will is a legal document that outlines how you want your assets distributed after your death. It also allows you to name guardians for minor children and specify final wishes. Wills go through probate, a court-supervised process that can be time-consuming and public.
Benefits of a Will:
- Straightforward and relatively inexpensive to create
- Allows you to name guardians for minor children
- Clearly outlines your wishes for asset distribution
Limitations of a Will:
- Must go through probate, which can delay distribution
- Becomes public record
- Doesn’t help manage assets during your lifetime
What is a Trust?
A trust is a legal arrangement where a trustee holds and manages assets on behalf of beneficiaries. Trusts can take effect during your lifetime (living trusts) or after your death. Unlike wills, most trusts avoid probate, offering privacy and efficiency.
Benefits of a Trust:
- Avoids probate, saving time and costs
- Offers privacy—unlike wills, trusts are not public record
- Can manage assets during your lifetime and after
- Useful for complex family situations or large estates
Limitations of a Trust:
- Typically more expensive and complex to set up
- Requires active management and funding (transferring assets into the trust)
Which is Right for You?
The best choice depends on your unique situation. For many, a will may be enough, especially if your estate is simple and your primary goal is to name guardians and distribute assets. However, if you own significant assets, have beneficiaries with special needs, or want to avoid probate, a trust might be the better option.
Some individuals use both—a will to handle guardianship and personal wishes, and a trust to manage and distribute assets.
At G.W. Sherwold Associates Inc., we help you understand these estate planning essentials and create a strategy tailored to your needs. Whether you’re just starting to think about your estate plan or reviewing an existing one, our team is here to guide you through every step.
Ready to take the next step? Contact G.W. Sherwold Associates Inc. today to discuss your estate planning goals and explore whether a trust, will, or both are right for you.