The choice between creating a will and establishing a living trust holds significant importance for anyone aiming to secure their legacy and provide for their loved ones. In Pennsylvania, both options serve distinct purposes and come with unique benefits, so choosing the one that aligns best with your estate planning goals can make a substantial difference.
At Rubin, Glickman, Steinberg & Gifford, P.C., we provide guidance on the advantages of each option, taking your individual circumstances into account. We help you through the drafting process for either a will or a living trust, ensuring all legal requirements are met and your documents accurately reflect your intentions.
What Is a Will?
A will is a legal document outlining your instructions on distributing assets after your passing. It designates beneficiaries and appoints an executor to handle the administration. In Pennsylvania, a will can also specify guardianship for minor children, offering peace of mind that they will be cared for according to your wishes. Beyond asset distribution, a will can include family provisions, making it a thorough tool for estate planning.
Benefits of a Will
A primary advantage of a will is that it provides a legally binding plan for distributing assets. It helps avoid the default rules of intestacy law, which dictate asset distribution if you pass away without a will. Creating a will allows you to determine your beneficiaries and how your estate will be divided, helping reduce family disputes and uncertainty.
A well-drafted will can also streamline the probate process, simplifying estate administration. Your executor will have clear guidance on settling the estate, which can ease the burden on your loved ones. Additionally, a will can outline your preferences for funeral arrangements, ensuring that your final wishes are respected. Wills are a popular estate planning choice due to their comprehensive and practical benefits.
What Is a Living Trust?
A living trust is a legal arrangement that allows you to transfer assets into the trust while you are alive. You can choose a revocable or irrevocable structure based on your needs. A revocable living trust lets you retain control over your assets and can be altered as necessary, whereas an irrevocable trust, once established, cannot be modified. Living trusts serve to manage assets during your lifetime and provide instructions for distribution after your death.
Benefits of a Living Trust
Avoiding probate is a major benefit of a living trust, as it allows beneficiaries to receive assets promptly and efficiently after your death. This benefit can be especially useful if you have minor children, as it enables a seamless transfer of assets without probate-related delays. Additionally, a trustee oversees the distribution of trust assets, providing guidance and reducing the administrative burden on family members.
Living trusts also offer greater privacy compared to wills. While a will becomes a public document in probate, the details of a living trust remain private. This confidentiality can appeal to individuals who wish to keep their financial affairs discreet. Living trusts thus offer an efficient and private means of managing your estate.
Key Differences Between Living Trusts and Wills
The main distinctions between living trusts and wills involve probate and asset management. A will must go through probate, which in some states can be both time-consuming and costly. However, this is not the case in Pennsylvania, so wills are generally the preferred method for managing an estate. In contrast, a living trust allows for immediate distribution of assets, bypassing probate entirely and potentially reducing taxes. Another difference is timing: a will only takes effect after death, whereas a living trust can be activated during your lifetime if you become incapacitated, enabling a trustee to manage your assets. Again, these vehicles are very rarely used in Pennsylvania.
Living trusts can offer more control over how and when beneficiaries receive their inheritance. While a will specifies recipients, a living trust can include conditions for distribution, such as age requirements or educational achievements. Recognizing these distinctions can help you decide on the best estate planning tool for your circumstances.
How to Choose Between a Will and a Trust (Or Both)
Selecting a will or living trust — or choosing to use both — depends on your estate’s size and complexity, family dynamics, and future plans. For large estates there could be benefits to employing a living trust. However, for straightforward estates, a will is generally the way to go. Consulting an estate planning attorney can help clarify which approach aligns best with your goals.
Consider how you want assets managed if you face incapacity. A living trust can facilitate asset management in this scenario, whereas a will cannot. Your comfort level with the legal framework and a desire for clear instructions during and after your lifetime may influence your decision.
Contact Rubin, Glickman, Steinberg & Gifford, P.C. for Assistance
When navigating estate planning in Pennsylvania, consulting with a seasoned estate planning attorney ensures you make informed choices. Rubin, Glickman, Steinberg & Gifford, P.C. offers individualized consultations to help determine the right approach, whether through a will, a living trust, or both. Our team will provide clarity on complex options and simplify the process.
Our support helps ensure your documents reflect your wishes and secure your family’s future. Call Rubin, Glickman, Steinberg & Gifford, P.C. at (215) 822-7575 or use our contact form.
Rubin, Glickman, Steinberg & Gifford P.C.
Pennsylvania Attorney's
January 3, 2025
