Both wills and trusts help us determine where we’d like assets to go when we die. Trusts can generally accomplish more complicated outcomes.
Wills allow us to designate who manages our estate and who receives our assets. Similarly, trusts also clarify how we’d like our assets distributed after our death. However, trusts may be more suitable than wills for individuals with property in multiple states or with complex family situations, for example.
“Wills may be simpler, whereas trusts can accomplish more complicated options.”
To avoid probate—the judicial process where decisions about who manages an estate, who receives which assets, and other questions are answered if we die without an estate plan—it may be helpful to establish a trust.