Common Questions: If I already have a will, do I need a Trust too?
Q: If I already have a will, do I need a Trust too?
A: Probably, but not necessarily. A will may be sufficient in some cases, but using both together provides a far more complete and effective plan for protecting your assets.
First off, a trust bypasses probate, which can be expensive and time consuming. The more of your assets that can bypass probate, the more that cost and time is reduced. As if time and cost weren’t enough, there is another reason to not like probate: a court will be in charge of your assets, rather than you. Read that again. Want to bypass probate? You’ll need a trust.
Secondly, trusts are private while wills are public. Do you want your nosy neighbor down the street to find out everything you have and where it’s going when you pass? Of course you don’t, but if all you have is a will, that’s exactly what could happen. Wills are public, trusts are private.
Lastly, if you want to have control of your assets beyond the grave, a trust can accomplish this. For example, some may want to pass their wealth to their children, but only certain amounts at certain ages, in the hopes that the increased wisdom and maturity of age will help them to use that money more wisely.
So with a trust, think: privacy and control. If you want either one of those or both, a trust is something you’ll want to consider.
Think of a trust like a suitcase: you pack it during your lifetime with assets—like your home, bank accounts, and investments. Once it’s packed, whoever you name as the trustee can carry it exactly where you want, even after you’re not around. That suitcase avoids probate and that suitcase remains private. A will, on the other hand, is more like a set of written instructions left on the kitchen table—it tells the court what to do with everything that wasn’t packed in the suitcase.
If you want some help with your financial plan, including estate planning, please reach out and we can get you started in the right direction. Shoot me an email, give me a call or fill out the contact sheet below.
Ryan Page, CFP®, MBA®
Office & Text:720-826-1092
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
