Wills vs. Trusts

Many individuals understand that establishing an estate plan is crucial to ensure your asset distribution wishes are carried out after your death. Those who do not plan adequately may leave a considerable amount of confusion for surviving family members. This lack of clarity can occasionally result in significant disputes among loved ones.

When planning your estate distribution, you might question whether a will or a trust will better achieve your estate planning objectives. Comprehending what wills and trusts entail and their differences can assist you in optimizing your plan.

What Is a Will?

A last will and testament, also known as a “will,” is a document used in estate planning to specify how your assets should be allocated. In Michigan, for a will to be deemed valid, it must comply with the Uniform Probate Code. The criteria include:

• The individual whose intentions are detailed in the will (the testator) must be at least 18 years old.

• The will must be signed and witnessed by two other people.

• The will must be in written form, not oral.

What Is a Trust?

A trust is an estate planning tool that establishes a distinct legal entity, allowing an individual (the “grantor”) to appoint a trustee to hold and manage assets for the trust’s beneficiaries. The grantor can determine how and under what conditions the assets in the trust will be distributed to the beneficiaries, invested, or otherwise utilized.

There are various types of trusts, each serving different estate planning goals. Some trusts become effective during the grantor’s lifetime, while others are only activated if the grantor becomes incapacitated or upon their death.

What Are the Differences between a Will and a Trust?

Wills and trusts are both valuable tools for estate planning. However, it's crucial to understand the key distinctions between them:

• A will becomes effective only after your death, whereas a trust can be used to manage your assets during your lifetime or after your death.

• You can have only one valid will at any given time, but a trust can be used to complement your will.

• Trusts can help avoid the probate process, which can save your heirs time and money, while wills must go through probate.

• Wills become public documents upon your death as they go through probate, whereas trust documents remain private.

• Wills can designate a guardian for any minor children you have, but trusts cannot be used for this purpose.

Which IS For ME?

Deciding between a will or a trust for your estate planning in Michigan is a crucial consideration. Unfortunately, there are no straightforward answers. Both options provide unique advantages. The best choice for you will depend on your specific objectives. Consulting with a knowledgeable Michigan estate planning attorney can assist you in determining whether a will, a trust, or a combination of both is suitable for your needs.

Contact a Wayne County Estate Planning Attorney

Whether you're just starting your estate planning journey or looking to modify your current plans, the seasoned estate planning lawyers at Marke Gilbert and Associates, PLLC are ready to assist. Our legal team is committed to providing you with the exceptional service you deserve. Reach out to us today at (734) 676-2700 or contact us online for a free consultation, and let us begin working for you.