Trust vs. Will

Trusts have a specific purpose.  Trusts can avoid probate, set aside a portion of an estate to insulate from estate tax, hold funds for a specific goal (ie education, elder care), hold life insurance proceeds, protect funds for special needs of an individual, and many other reasons.  A Trust is a contract.  The Successor Trustee, typically an adult child, steps up to fulfill the terms of the contract (Trust).  This is usually without court supervision.

A Will is a last testament of our wishes as to our property and perhaps as it relates to our minor children (nomination of guardian).  A Will makes our wishes known, but must be filed with court and probated to be followed.  Probate is an official court process governed by statute that requires a Personal Representative to publish a notice to creditors, wait a mandatory period of time to allow creditors to come forward and seek a court's permission to follow the Will at the time of Distribution.  As a court supervised process, probate requires reporting to the court and fulfilling statutory duties, like paying the final bills of decedent.  Since it is structured and court supervised, expect attorney fees to help the PR fulfill their statutory duties and a mandatory wait time of four months.  Will preparation can be a cost effective means to ensure your wishes are known.

Depending on your goal and family situation, a simple Will may suffice.  But if you have strings attached to your funds, a specific purpose like special needs or a Credit Shelter Trust, or if you don't want your family to go through Probate, a Trust is a flexible document that will maintain your privacy and can distribute your estate often before a probate matter is closed.

Because needs vary, there are many tools available to fulfill your goals.  There is even an option to create a Trust in your Will - for times when your Trust is contingent on something, like having minor children that need funds protected.  Let us assist you in determining the best approach to your particular goal.

Do you even need a Will?  Yes!  If you don't write one, then the State of Oregon wrote one for you and it says you leave your assets to your children in equal shares, including your deceased children's kids by right of representation.  But your PR will have to obtain a bond (insurance policy) or be subjected to strict oversight, including having to ask for permission to liquidate.  The bond and request to sell property usually cost more than it costs to prepare a Will.