Do I Need a Trust, or Is a Will Enough?

Search online and you will find plenty of people saying everyone needs a living trust. For many families in Chester County, the honest answer is different: a well-drafted will, up-to-date beneficiary designations, and powers of attorney cover most situations. A trust is the right tool in specific circumstances, and it is worth knowing what they are.

What a Will Does

A will names your executor, says who inherits what, and names a guardian for young children. It goes through probate, the court-supervised process of settling an estate. In Pennsylvania, probate is generally more manageable than its reputation from other states would suggest.

What a Trust Does That a Will Cannot

• Avoids probate for anything titled in the trust's name.
• Keeps things private. A probated will becomes a public record. A trust usually does not.
• Manages your money if you become incapacitated, through a successor trustee you choose.
• Avoids a second probate in another state if you own real estate there.

The Part People Forget: Funding

A trust only controls what is actually put into it. That means retitling your house, moving accounts into the trust's name, and remembering to do the same with anything you acquire later. A trust that was signed but never funded leaves those assets to go through probate anyway. It is also worth knowing that a revocable living trust does not avoid Pennsylvania inheritance tax.

Young children do not automatically require a separate living trust. A will can create a trust for them that holds and manages their inheritance until they reach an age you choose, rather than handing it over at 18.

Why the Answer Is Often a Will

Much of what many families own already passes outside of probate. Retirement accounts and life insurance go to the beneficiaries named on the account, and a home owned jointly with a spouse usually passes directly to the surviving spouse. Once those are accounted for, what is left to go through probate is often modest, and a will handles it well.

The right answer depends on what you own and who you want to provide for. That is the conversation worth having before you pay to set up and maintain something you may not need.

This article is general information about Pennsylvania law, not legal advice for your situation. Every estate and family is different. Reading it does not create an attorney-client relationship with D'Amico Law, PC.