Estate planning is an essential part of protecting your assets and ensuring your loved ones are provided for after you pass away. In California, two common tools used in estate planning are wills and trusts. While both serve to manage and distribute your assets, they have distinct differences in how they work and the benefits they provide. At John D. Laughton, A Professional Law Corporation, we help Californians navigate estate planning and understand the differences between these critical documents.

What is a Will?

A will is a legal document that outlines your wishes for the distribution of your assets after your death. It allows you to specify who will inherit your property, name guardians for minor children, and designate an executor to manage your estate.

Key Characteristics of a Will:

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  Goes through probate: A will must go through probate, a court-supervised process that validates the will and oversees the distribution of assets. Probate can be time-consuming and costly, depending on the complexity of the estate.
• Becomes public record: Once your will enters probate, it becomes a public document, meaning the details of your estate and your beneficiaries are accessible to anyone.
• Takes effect upon death: A will only comes into effect after you pass away, and you can modify or revoke it at any time during your life.

What is a Trust?

A trust, specifically a revocable living trust, is a legal entity that holds your assets for the benefit of your chosen beneficiaries. You can transfer ownership of your property into the trust during your lifetime, and after your death, the trustee (the person managing the trust) distributes the assets according to your instructions.

Key Characteristics of a Trust:

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  Avoids probate: One of the primary benefits of a trust is that it bypasses the probate process, allowing assets to be distributed directly to beneficiaries without court involvement. This saves time, legal fees, and maintains privacy.
• Takes effect during your lifetime: A living trust can take effect while you are alive, allowing you to manage your assets and make changes as needed. If you become incapacitated, the trustee can step in and manage your assets on your behalf.
• Maintains privacy: Unlike a will, a trust is not made public. The details of your estate remain private, which can be important for those who want to keep their financial affairs confidential.

Choosing Between a Trust and a Will

When deciding whether to use a trust or a will—or both—it’s important to consider your specific needs and goals.

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  Wills are generally sufficient for those with smaller estates or straightforward asset distribution wishes. They are also necessary for naming guardians for minor children.
• Trusts are ideal for those who wish to avoid probate, maintain privacy, or have complex estates. Trusts also offer more control over how and when your assets are distributed, especially for beneficiaries who may need additional guidance or support.

How John D. Laughton, A Professional Law Corporation Can Help

At John D. Laughton, A Professional Law Corporation, we understand that estate planning is a deeply personal process. Whether you are considering creating a will, establishing a trust, or both, we can guide you through the process and ensure your estate plan is tailored to your unique circumstances. Our experienced team is dedicated to helping you protect your assets and provide for your loved ones in the future.

Contact us today to learn more about how we can assist you with estate planning matters in California.