Estate planning is one of the most critical steps to ensuring your legacy and your loved ones' financial security. In Pennsylvania, two of the most common tools are living trusts and wills. Understanding the differences is crucial to making the right choice.
What Is a Living Trust?
A living trust is a legal document that places your assets into a trust for your benefit during your lifetime. Upon your death, the trust assets are transferred to your designated beneficiaries by a successor trustee — without the need for probate.
Advantages of a living trust:
- Avoids probate — assets in a living trust do not go through probate, saving time and money.
- Privacy — unlike wills, living trusts are not public documents, so the details of your estate remain private.
- Flexibility — you can modify or revoke a living trust during your lifetime.
- Incapacity planning — if you become incapacitated, a successor trustee can manage your assets without court intervention.
What Is a Will?
A will is a legal document that outlines how you want your assets distributed after your death. It also allows you to name guardians for minor children and specify other final wishes.
Advantages of a will:
- Simplicity — wills are straightforward and typically less expensive to draft than living trusts.
- Guardianship — a will is essential if you have minor children and need to designate a guardian.
- Flexibility for small estates — for smaller estates where probate costs are minimal, a will may be sufficient.
Key Differences
| Will | Living Trust | |
|---|---|---|
| Probate | Required | Avoided |
| Privacy | Public record | Private |
| Cost to create | Lower | Higher |
| Incapacity planning | No | Yes |
| Guardianship | Yes | No (need a will) |
Common Misconceptions
"A will avoids probate." All wills must go through probate in Pennsylvania.
"Only the wealthy need a living trust." Living trusts offer benefits like privacy and incapacity planning that are valuable regardless of wealth.
The Best Approach: Combine Both
Many Pennsylvania residents benefit from combining both tools. A "pour-over will" acts as a safety net, ensuring any assets not placed in the living trust are transferred to the trust upon your death. This strategy provides comprehensive coverage.
The experienced attorneys at Ament Law Group can guide you through every step. Call us at (724) 733-3500 to discuss which approach is right for your family.
Need Help with Your Estate?
At Ament Law Group, P.C., we help Pennsylvania families protect their wealth and plan for the future. Whether you need a trust, will, or probate administration assistance, our team is here to guide you every step of the way.
Call us today at (724) 733-3500 to schedule your consultation.