Should I Make a Will or a Trust?

 Posted on June 19, 2023 in Estate Planning

One of the most significant issues people deal with when planning their estates is deciding whether to write a will or set up a trust. While both have their benefits, there are times when one option may be more appropriate than the other. To ensure you are able to make a well-informed decision, contact an estate planning attorney to weigh your options and see what makes the most sense for you and your situation.

Factors to Consider When Making Estate Planning Decisions

Here are some factors to consider before deciding whether to make a will or a trust:

• Cost – Writing a will is generally less expensive than setting up a trust. This is because a will is a relatively straightforward legal document that can be drafted by an attorney in a short amount of time. On the other hand, setting up a trust requires more time and effort and additional legal fees.

• Simplicity – Wills are simpler to create than trusts and often involve just a few straightforward clauses. Conversely, trusts are more complex and require a bit more expertise in their creation. For those with basic estates, a will may be the better option.

• Privacy – Wills are a matter of public record, which means anyone can see them once they have been filed. Conversely, trusts are private documents and are not subject to public scrutiny. For those who are concerned about their privacy, a trust may make more sense than a will.

• Tax planning – A trust may be preferable if you have a significant estate and concerns regarding federal estate taxes. Trusts offer a number of tax planning strategies that can help minimize estate taxes for beneficiaries.

• Incapacity planning – For individuals with concerns about incapacity or who have special needs children or other beneficiaries who will require ongoing support, a trust may be the better option. A trust can help plan for the individual’s ongoing care, whereas a simple will may not be enough.

Contact a Geneva Estate Planning Attorney

There are various factors to consider when deciding whether to make a will or a trust. While both options are valid, each has its own benefits depending on your circumstances. As an individual, it is important to evaluate your estate and determine which approach will likely be more effective in meeting your needs. Contact the esteemed Kane County estate planning lawyer with Loire Krajniak Law, LLC for all your estate planning needs. Call 630-448-2406 for a free consultation.

Source:

https://www.investopedia.com/articles/personal-finance/051315/will-vs-trust-difference-between-two.asp