Wills and Trusts

Now that you’re ready to create your comprehensive estate plan, you might be wondering what form your plan should take. New York State allows both wills and trusts as legal structures to pass your property to your surviving spouse and heirs. However, they may not be equal when it comes to protecting your assets and accomplishing your goals.

What’s the Difference Between Wills and Trusts?

Wills and trusts have a few things in common. They both allow you to transfer property to loved ones at your passing, and both can be modified or revoked during your lifetime. The major difference between the two is the method by which property is transferred to beneficiaries.

A will, also known as a Last Will and Testament, is a signed statement that appoints an executor to oversee and coordinate the distribution of your assets after your death. It can also be used to name a guardian to care for minor children and include details of your funeral or memorial plans (such as your choice of burial method or where you would like your ashes scattered).

A trust is a document outlining a fiduciary relationship between your holdings and a party of your choosing. This party, called the trustee, will have the authority to handle your assets for the benefit of your beneficiaries. There are two main types of trusts: irrevocable trusts, which cannot be altered once they are created, and revocable (living) trusts, which can be changed by the creator at any time.