One of the most common questions we hear at our firm is, "Should I get a will or a trust?" It's a foundational question for anyone considering their legacy and the future of their family. For residents of Orange County, where property values are high and life can be complex, making the right choice is especially critical.
Both wills and trusts are powerful estate planning tools, but they serve different purposes and have distinct advantages. Let's break down the differences to help you understand which path might be best for your Orange County estate plan.
What is a Last Will and Testament?
A Last Will and Testament is a legal document that outlines your wishes for the distribution of your property and the care of any minor children after your death.
Key Characteristics of a Will:
A will has no legal authority until after you pass away and it is validated by the probate court.
In California, if your estate is valued above a certain threshold (currently $184,500), a will must go through a court-supervised process called probate. This can be time-consuming, expensive, and is a matter of public record.
You name an executor to be in charge of carrying out your will's instructions.
A will is the primary document where you can nominate a guardian to care for your children if something happens to you.
What is a Revocable Living Trust?
A Revocable Living Trust is a legal arrangement where you (the "grantor") transfer your assets into a trust managed by a "trustee" (usually yourself during your lifetime) for the benefit of your "beneficiaries."
Key Characteristics of a Trust:
This is the most significant advantage of a trust. Assets held in the trust bypass the probate process, allowing your beneficiaries to receive them faster, with less cost, and with complete privacy.
A trust allows you to name a successor trustee who can manage your financial affairs if you become unable to do so yourself, avoiding the need for a court-appointed conservatorship.
Unlike a will, which becomes a public court record during probate, a trust is a private document.
You can set specific conditions for how and when your beneficiaries receive their inheritance.
Key Differences at a Glance
| Feature | Will | Living Trust |
|---|---|---|
| Probate Process | Required | Avoided |
| Privacy | Public Record | Private |
| Incapacity Planning | No | Yes |
| Cost to Create | Lower Upfront | Higher Upfront |
Which is Right for Your Orange County Family?
For many homeowners in Orange County, a living trust is often the preferred choice. The high value of real estate almost guarantees that an estate with property will exceed the probate threshold, making a trust a valuable tool for avoiding the significant statutory fees and delays of probate court.
However, a will is still an essential part of a comprehensive estate plan, even if you have a trust. A "pour-over will" acts as a safety net, directing any assets not transferred into your trust to be moved there upon your death. It is also the only place to nominate guardians for your children.
Get Professional Guidance
Choosing between a will and a trust isn't a simple decision. It depends on your unique financial situation, family dynamics, and long-term goals. The best way to protect your family and your assets is to work with an experienced estate planning attorney.
For more information on the California probate process, you can visit the California Courts Self-Help Center.