Understanding Wills and Trusts: Which One is Right for You?

Have you ever found yourself wondering what the differences between a Will and a Trust is? Wills are legal documents that provide instructions on how to distribute your assets after you pass away. They ensure that your wishes are followed regarding who receives your property and in what proportions. However, wills must go through probate court, a legal process that can be time-consuming and costly.

On the other hand, trusts are legal arrangements that allow you to transfer your assets to a trust account, which can be managed by yourself while you are alive or by others after your death. Trusts can be established to take effect either during your lifetime (living trusts) or after your death (testamentary trusts). One of the significant advantages of trusts is that assets held within them do not need to go through probate court. This means your beneficiaries can access their inheritances more easily and quickly, without the delays and expenses associated with probate.

There are various types of trusts, each serving different purposes. For example, revocable trusts can be altered or revoked by the grantor during their lifetime, providing flexibility. Irrevocable trusts, once established, cannot be changed, offering benefits like asset protection and estate tax reduction.

While it may be sufficient for some individuals to have only a will, those with trusts typically also need a will. This is to ensure that any property not included in the trust is still distributed according to their wishes. This type of will, often called a “pour-over will,” ensures that any remaining assets are transferred into the trust upon death.

In summary, both wills and trusts play crucial roles in ex estate planning. Wills provide clear instructions for asset distribution, while trusts offer a more efficient way to manage and transfer assets, bypassing the probate process and providing additional benefits depending on the type of trust chosen.

8 Reasons You May Want a Trust

Trusts often become a key component of estate planning for individuals with assets exceeding $200,000, including homeowners. They are particularly valuable for parents who need to manage how their assets are distributed to their children. This is especially important in situations involving children from previous marriages or young children who may require specific provisions.

Trusts offer numerous benefits, making them a versatile tool in estate planning. Here are eight reasons to consider establishing a trust:

• Avoiding Probate: Assets held in a trust bypass the probate process, allowing beneficiaries to access their inheritance more quickly and with fewer legal hurdles.

• Tax Benefits: Certain types of trusts can provide significant tax advantages, potentially reducing estate and gift taxes.

• Control Over Asset Distribution: Trusts allow you to specify exactly how and when your assets are distributed, which is particularly useful for managing inheritances for minors or individuals with special needs.

• Privacy: Unlike wills, which become public record, trusts can keep your estate details private.

• Protection from Creditors: Assets in certain types of trusts can be protected from creditors, ensuring that your beneficiaries receive their inheritance without legal claims against it.

• Flexibility: Trusts can be tailored to meet a variety of needs and can be adjusted as your circumstances change.

• Continuity of Asset Management: In the event of your incapacity, a trust ensures that your assets are managed according to your wishes without court intervention.

• Support for Charitable Causes: Trusts can be used to support charitable organizations, allowing you to leave a lasting impact.



By understanding these benefits, you can better determine how a trust might fit into your overall estate planning strategy.

Do You Need a Will or Trust Attorney in the Chicagoland Area?

Zapolis Law & Associates, P.C. has over 40 years’ experience serving the legal needs of clients in Frankfort,Orland Park, Tinley Park, and surrounding areas. Whether you're looking to create a will or trust, our experienced attorneys are here to help. Reach out to Zapolis & Associates, P.C. today and schedule a consultation with our knowledgeable team.