• About Steven Miller
  • Practice Areas
    • Practice Areas
    • Trust Estate Planning
      • Trust Estate Planning
      • Trusts
      • Revocable Living Trust
      • Special Needs Trusts
      • Lifetime Independent Trust Counsel
      • Irrevocable trusts
      • Medicaid Trusts
      • Asset Protection
      • Realty Trust
      • Delaware Trust
    • Probate Planning
      • Probate Planning
      • Wills
      • Guardianship
      • Conservatorship
      • Estate Administration
    • Elder law
      • Elder law
      • Medicaid Planning
      • Powers of Attorney
      • Special needs planning
      • Nursing home abuse
      • Life care planning
      • Veterans benefits
      • Financial Power of Attorney
      • Long Term Care Planning
      • Crisis Planning
      • Living Wills
      • Healthcare Power of Attorney
    • Tax Law
  • Locations
    • Locations
    • Pennsylvania
  • Blog
  • Contacts
(855) 936-3886 Let’s Talk
  • About Steven Miller
  • Practice Areas
    • Practice Areas
    • Trust Estate Planning
      • Trust Estate Planning
      • Trusts
      • Revocable Living Trust
      • Special Needs Trusts
      • Lifetime Independent Trust Counsel
      • Irrevocable trusts
      • Medicaid Trusts
      • Asset Protection
      • Realty Trust
      • Delaware Trust
    • Probate Planning
      • Probate Planning
      • Wills
      • Guardianship
      • Conservatorship
      • Estate Administration
    • Elder law
      • Elder law
      • Medicaid Planning
      • Powers of Attorney
      • Special needs planning
      • Nursing home abuse
      • Life care planning
      • Veterans benefits
      • Financial Power of Attorney
      • Long Term Care Planning
      • Crisis Planning
      • Living Wills
      • Healthcare Power of Attorney
    • Tax Law
  • Locations
    • Locations
    • Pennsylvania
  • Blog
  • Contacts
(855) 936-3886 Let’s Talk
  • Miller Law Firm, PC
  • Blog
  • The Differences Between a Trust and a Will

The Differences Between a Trust and a Will

Estate planning can be the difference between a steady and affordable transition for your family after death, and a chaotic, expensive one. We believe no family should move forward without a plan.

Estate planning is normally done through forming a trust or writing a will. We’ve previously talked about some of the differences, but we’re going to dive deeper into which is the right fit for your family.

Trust-based estate planning

A trust comes in several forms, but it ultimately serves the purpose of smoothly transferring your money and assets to beneficiaries of your choosing. If you have a trust, the process is more direct and requires little to no court involvement.

A third party will be in charge of ensuring the process goes according to your plan, but your trust will generally be straightforward which avoids unnecessary disputes.

Pros of a trust

Immediacy: a will takes effect when you die but a trust is effective once it is active and funded

Time: A trust ensures your assets are distributed at the time of your death without needing to go through the probate court process (which also avoids additional court fees)

Flexibility: While a trust allows immediate disbursement of your assets, a trust allows you to lay out more specific direction on when, where, and how specific assets are to be distributed instead of just immediately following your death

Building on your trust: unlike a will, a trust is funded throughout your lifetime and even grow instead of just being whatever is left when you die, transferring ownership of assets placed in the trust to the owner of the trust

Privacy: because you avoid a court date, the details of your trust can be left unknown to anyone you don’t want to know (including beneficiaries beyond what is paid out to them)

Tax benefits: irrevocable trusts are able to avoid some common taxes associated with estate planning

Cons of a trust

Cost: This is the most obvious problem with a trust is that it is more expensive upfront to put together but, as mentioned above, you avoid probate court and unnecessary attorney fees later

Lack of guardianship: You will not be able to layout guardianship for minor children through the formation of a trust

More paperwork: Trusts are more complex than wills, so you will find yourself taking on more complex paperwork throughout the process

Unable to be altered: Some trusts cannot be changed over the course of time

Will-based estate planning

A will is a much simpler process for divvying up your assets upon your death. You may find yourself opting for this if you have fewer total assets and minor children who will need guardianship upon your death.

In this case, an executor will be picked to take possession of your assets and distribute them as your will dictates.

Pros of a will

Simplicity: A will involves less paperwork and is often a single document dictating where your assets go after your death

Cost: Wills cost less for the individual(s) whose assets are being dictated (though there will be additional costs taken out after death through the probate process)

Flexibility: A will can be altered at almost anytime and for any reason

Cons of a will

Time: While the initial creation of a will can be quick, your estate will enter probate before assets are distributed

Lack of privacy: Your every wish will be read allowed in front of beneficiaries and court officials during the probate process and become public record

Easily contestible: Because the process is less thorough than a trust, it is easier for someone to challenge your will and force alterations that may go against your plans

No tax or credit protection: Unlike irrevocable trusts, all wills are subject to taxes and creditors can seize assets laid out in your will upon your death

Getting started

No matter which choice you believe fits your family, let Miller Law Firm handle your case with care and get your estate plan started today. Contact us and protect your legacy by planning for the future today!

 

Share
Tweet
Thanks for reading! Please like and share.

Blog – Miller Law Firm

LOGO Miller Law Firm Miller Law Firm
15th June 2022
Estate Planning to Protect Eligibility for Veteran Aid and Attendance (A&A) Benefit

15th June 2022

Estate Planning to Protect Eligibility for Veteran Aid and Attendance (A&A) Benefit
Post Description
LOGO Miller Law Firm Miller Law Firm
4th May 2022
How Special Needs Trusts and ABLE Accounts Can Help Your Family

4th May 2022

How Special Needs Trusts and ABLE Accounts Can Help Your Family
Post Description
LOGO Miller Law Firm Miller Law Firm
15th April 2022
Why a Medicaid Asset Protection Trust Could Be Right For You

15th April 2022

Why a Medicaid Asset Protection Trust Could Be Right For You
Post Description
  • About Steven Miller
  • Practice Areas
  • Blog
  • Contacts
Schedule Consultation

PA Location

630 Freedom Business Center
King of Prussia PA 19406
Phone (855) 936-3886

Monday - Friday: 9 am to 5 pm

PA Location

718 Poplar Street, Suite I
Lebanon PA 17042
Phone (717) 328-8883

Monday - Friday: 9 am to 5 pm

Web Design — Direct Line Development

© 2022 Miller Law Firm, PC