“But how do I know which one is right for my plan?” you might be thinking.
Here’s the thing—when it comes to wills and trusts, you don’t have to pick just one. In fact, for most people, having both is the sweet spot. It’s a combo that covers all your bases and gives your loved ones the smoothest path forward.
At the Law Offices of Miller & Miller, P.C., we've helped countless families in Ohio create estate plans that combine these powerful tools to provide maximum protection and peace of mind.
Considering setting up a trust or making a will? Our team can help with all your estate planning needs. Call us at 313-386-1400 today to get started on your plan.
What Is a Will?
A will (sometimes called a "last will and testament") is a document in which you specify what happens to your assets and how they would be distributed after your passing. Think of it as your final set of instructions to your loved ones.
With a will, you can:
- Name beneficiaries who will receive your property
- Designate a guardian for minor children
- Appoint an executor who will carry out your wishes
- Specify funeral arrangements if you have particular preferences
- Create a safety net for assets not captured in your trust
After you pass away, your will must go through a court process called probate. During this process, the court validates your will, pays any outstanding debts from your estate, and oversees the distribution of your remaining assets according to your wishes. Without a will in place, your assets would be subject to what is known as the law of intestate succession (outlined in Ohio Revised Code § 2105.06) that divides everything you own among the closest family members based on a set formula.
What Is a Trust?
A trust is an established fiduciary relationship between you (the "grantor") and a trustee to manage and protect certain assets on behalf of your chosen beneficiaries. Think of it as creating a protective container for your assets that can be managed according to your specific instructions.
A trust can:
- Transfer assets outside of probate
- Provide for management of assets if you become incapacitated
- Set conditions on how and when your assets are distributed
- Potentially reduce estate taxes
- Protect assets for beneficiaries with special needs or those who might need help managing money
- Keep your financial affairs private
However, a trust only controls assets that have been properly placed in the trust. This process is called "funding" the trust. Assets that aren’t part of a trust will go through probate. In Ohio, where probate can tie up estates for months, this means your family will face court delays and public filings before they get their inheritance.
Difference Between a Trust and a Will in Ohio
While both wills and trusts serve to transfer your assets, they function differently in several important ways:
- Probate process: Wills must go through probate, which is a public court process that can take months. Assets in a properly funded trust avoid probate entirely, saving a considerable amount of time (and stress).
- Timing of asset distribution: The instructions laid out in a will only take effect after death and assets are distributed once probate is complete. Trusts can be effective immediately and can distribute assets according to your timeline—immediately, gradually, or years later.
- Privacy: Wills become public record during probate, meaning anyone can see what you owned and who received it. Trusts remain private, with details known only to trustees and beneficiaries.
- Incapacity planning: Wills provide no protection if you become incapacitated. You would need additional documents like a power of attorney. Trusts can include provisions for managing your assets if you become unable to do so yourself.
- Cost considerations: Wills are generally less expensive to create initially, though probate costs after death can take a hit. While trusts are usually more expensive to set up, they may save money overall by avoiding probate costs.
- Protection for minor children: In a will, you can name guardians for minor children. A trust, meanwhile, can contain detailed instructions for how assets should be used for children's benefit.
But just because trusts and wills have many differences, doesn’t mean they’re rivals. On the contrary, they’re teammates—and together, they’re tough to beat.
Trust vs. Will: Which One to Choose?
When it comes time to decide between a trust and a will for your estate plan, the choice might feel daunting. It’s like choosing what to have for breakfast: avocado toast or eggs? Why not have both for a more nutritious meal?
Both a trust and a will offer valuable ways to protect your assets and provide for your loved ones, yet they serve distinct purposes. But rather than viewing them as an either/or decision, consider this: for many families, the strongest estate plan combines the strengths of both a will and a trust.
Together, a will and a trust complement each other to form a comprehensive plan. The trust can manage your major assets (e.g., real estate or savings), ensuring a swift, private transfer to your heirs. Meanwhile, the will acts as a safety net, covering any property not placed in the trust and securing guardianship for your children. This approach minimizes gaps in your plan.
Let’s Work on Your Estate Plan Today
At the Law Offices of Miller & Miller, P.C., our father and son team brings decades of experience helping Ohio families create estate plans that often combine wills and trusts for maximum protection. Rather than choosing one tool over the other, we aim to help clients create a comprehensive plan that leverages the strengths of all available tools. Let’s discuss your needs and select the tools that best accomplish your goals during a consultation. Call at 313-386-1400 or use our contact form.