Oregon Will and Trust Attorneys

Understanding the Difference Between Wills and Trusts

Wills and trusts are both useful estate planning devices that serve different purposes. Both can work together to create a complete estate plan. One of the main differences between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as it is created.

A will is a document that designates who will receive your assets at your death, and it also appoints a legal representative to communicate and carry out your wishes. In contrast, a trust can be used to begin distributing property before death, at death, or afterward. A trust is a legal arrangement through which a trustee holds the legal title to the property for a beneficiary. Also, a trust typically has two types of recipients, one that receives income from the trust during their life, and another that receives whatever is left over after the first set of beneficiaries dies.

At your death, a will includes any property that is only in your name. It does not include property held in joint tenancy or a trust. On the other hand, trusts cover only property that has been transferred to the trust. Therefore, for a property to be included in a trust, it has to be put in the name of the trust.

An additional difference between a will and a trust is that a will passes through probate, meaning that a court will oversee the will’s administration. However, a trust circumvents probate and, therefore, does not go to court; this saves time and money.

Wills and trusts have their advantages and disadvantages. There are a number of factors that go into determining which avenue is best for you and your beneficiaries. Our will and trust attorneys have experience with all of the intricacies that go into these plans.