What’s the Difference between wills and Trusts?
| WILLS | TRUSTS | |
|---|---|---|
| NATURE OF THE DOCUMENT | A Will, also known as a Last Will & Testament, is a legal document that outlines how a person’s assets and property should be distributed upon their death. It only becomes effective after the person (testator) passes away. | A Trust is a legal entity that holds and manages assets for the benefit of specific individuals or entities (beneficiaries). A Trust can be established during a person’s lifetime (Living Trust) or as part of their will (Testamentary Trust). Living Trusts can function during the grantor’s lifetime and after their death. |
| PROBATE PROCESS | Assets distributed through a will typically go through the probate process in Florida. Probate is a court-supervised process that involves validating the Will, paying outstanding debts, and distributing assets according to the Will’s instructions. It can be time-consuming and costly. | Assets held in a properly funded Living Trust generally avoid probate in Florida. This means that they can be distributed to beneficiaries more efficiently and with less court involvement. However, assets in a Testamentary Trust established within a will may still need to go through probate. |
| PRIVACY | Wills are typically a matter of public record in Florida once they go through probate. This means that the contents of the Will, including the details of asset distribution, become accessible to the public. | Living Trusts offer a greater degree of privacy because they do not become public record. The terms and details of a Living Trust usually remain private. |
| AMENDMENT & REVOCATION | Wills in Florida can be amended or revoked at any time by the testator, provided they have the mental capacity to do so. This can be done through a codicil (an amendment to the Will) or by creating a new Will. | Revocable Living Trusts are flexible and can easily be amended or revoked by the grantor during their lifetime, as long as they have the mental capacity to make such changes. Irrevocable Living Trusts are much more difficult to amend or revoke. Testamentary Trusts created within a Will can also be modified by amending the will. |
| PROPERTY OWNERSHIP | A Will only controls assets and property that are solely in the testator’s name at the time of their death. It does not govern assets held jointly with rights of survivorship, assets with designated beneficiaries (i.e., life insurance policies), or assets held in a Trust. | A Trust can hold and manage various types of assets, including real estate, bank accounts, investments, and personal property. It provides more flexibility in managing and distributing assets. |
