Do I Need a Trust If I Have a Will?

Deciding whether to create a trust when you already have a will is a common question clients bring to estate planning attorneys. Both wills and trusts govern the disposition of assets upon death, but they operate differently and serve distinct objectives. This overview explains key differences, common situations in which a trust may be advisable, and important considerations to discuss with an attorney.

Understanding Wills and Trusts

A will is a legal document that names beneficiaries, appoints an executor, and can address guardianship for minor children. A trust is an arrangement in which one party (the trustee) holds legal title to assets for the benefit of another (the beneficiary). Trusts may be revocable or irrevocable and can be designed to manage assets during a lifetime and after death.

Key distinctions that matter in practice include:

• Probate: Assets distributed under a will typically pass through probate, a court-supervised process that can be public, time-consuming, and costly depending on the jurisdiction and estate complexity.

• Control and Privacy: Trusts can often avoid probate, allowing for private asset distribution and potentially more control over the timing and conditions of distributions.

• Incapacity Planning: A properly funded revocable trust can provide a mechanism for a successor trustee to manage assets if the grantor becomes incapacitated, without the need for court-ordered guardianship or conservatorship.

When a Trust May Be Beneficial

A trust is not universally necessary for every estate, but it can offer meaningful advantages in certain circumstances:

• If avoiding probate is a priority due to privacy concerns or to reduce delays for beneficiaries.

• If more precise control over distributions is desired, such as staged inheritance for younger beneficiaries or protections against creditor claims.

• If the estate includes property in multiple states, which can complicate probate and make a trust an efficient option.

These considerations involve legal, tax, and practical dimensions. For example, trusts can interact with estate and gift tax planning, creditor protection strategies, and long-term care or public benefits eligibility. The specific benefits depend on the type of trust and how it is funded and administered.

Common Situations Favoring a Trust

Certain client circumstances frequently lead attorneys to recommend a trust as part of an integrated estate plan:

• Blended Families: Trusts can help ensure that assets are distributed in accordance with the grantor’s intentions, provide income or other interests to a surviving spouse, and preserve principal for children from prior relationships.

• High-Value or Complex Estates: When estates are large, hold business interests, or include unique assets, trusts allow tailored management and transition mechanisms.

• Privacy and Speed of Distribution: Individuals who value confidentiality or who wish beneficiaries to receive assets promptly without waiting for probate often prefer trusts.

• Special-Needs or Vulnerable Beneficiaries: Trusts can be structured to provide for beneficiaries without jeopardizing public benefits or exposing assets to undue risk.

Working With a Lawyer

Choosing whether to incorporate a trust requires a fact-specific analysis. The Law Office of David Waterstradt is experienced with Michigan state law, asset types, family dynamics, tax considerations, and the costs and administrative requirements of creating and funding a trust. Our attorneys can explain the differences among revocable living trusts, irrevocable trusts, testamentary trusts, and specialized vehicles, and advise on which aligns with a client’s objectives.

A will remains a foundational document, but a trust can offer additional control, privacy, and administrative advantages in many situations. The right approach depends on individual circumstances and professional legal advice. Consulting an experienced estate planning attorney to evaluate whether a trust complements your will and to design a plan suited to your goals is one of the smartest ways to ensure your assets will be distributed as you wish.

Do You Have Questions About Wills and Trusts in Muskegon, MI?

If you live in Muskegon, Norton Shores, Grand Rapids, or Grand Haven, MI, and have questions about drafting a will or creating a trust for a loved one, contact the Law Office of David Waterstradt. We have more than 30 years of experience with wills and trusts, elder law, Medicaid planning, nursing home planning, powers of attorney, estate planning, and tax planning. We can also help if you have put planning off for too long. The team at David Waterstradt Law also has more than 30 years of experience in Muskegon, MI, with veterans' benefits and veterans' law.