- Wills are drawn up with the sole purpose of establishing how an estate will be divided upon death. Individuals name beneficiaries, executors who will distribute assets and guardians for minor children.
- Living trusts also state how assets should be divided at death. Individuals name a successor to the trust, much like an executor for a will. Unlike wills, living trusts involve putting assets into a trust while a person is still living.
- People often choose to create a living trust is to avoid the long probate associated with wills. Only assets in a person's name are required to go through probate. Since living trusts name the trustee involved as the holder of an estate, the courts are not usually involved with the distribution of property.
- Wills are generally less expensive and easier to create than living trusts. Living trusts require fees for creation and, in most cases, fees for upkeep. For this reason, living trusts are not usually recommended for small estates.
- Individuals preparing their estate are encouraged to contact an attorney to assess the differences between a will and living trust and to establish the best course of action for their estate.
