Many people in Minnesota work with Amicus Law to figure out the proper way to pass their assets to loved ones. Wills and trusts can both serve that purpose, though they function in different ways. Deciding between them might affect the time your beneficiaries wait to inherit, the costs they pay, and how much control you keep over your property during your life.
Understanding wills vs trusts can help you create an estate plan that matches your goals and protects your family from unnecessary delays. Although each option has advantages, you’ll want to consider factors such as privacy, probate, and long-term control as you shape your strategy.
What A Will Does
A will is a written document expressing how you want your belongings distributed when you die. You can name beneficiaries for real estate, vehicles, bank accounts, and other property. It also allows you to name a personal representative—sometimes called an executor—who collects and distributes assets according to your wishes.
Unlike a trust, a will normally goes through probate, which is a court-supervised process. The judge reviews the will to confirm it’s valid and oversees the personal representative’s actions. Some find probate helpful because a legal authority confirms everything is correct, while others may see it as adding time and public disclosure.
What A Trust Does
A trust places certain assets under the management of a trustee for the benefit of your chosen beneficiaries. If you create a living trust (often called a revocable trust), you can move property into the trust’s name. You typically serve as the trustee while you’re alive, keeping control over how those assets are handled. When you pass away or become incapacitated, a successor trustee manages or distributes the property based on your instructions.
Many people find a trust appealing if they want to avoid probate. Assets held in the trust generally pass directly to your beneficiaries without the need for a court proceeding. That can speed up the inheritance process and keep your private financial details out of the public record. A trust also offers more control over distributions, such as releasing funds to beneficiaries at specific intervals or for certain purposes.
Considering Probate Factors
Probate can vary in length and cost based on the size of an estate and any disputes that arise. While some estates move through probate with minimal hurdles, others might involve waiting periods or disagreement among heirs. A will goes to probate for validation, but the details become part of the public record. Some families prefer more privacy and lean toward using trusts.
There are cases, though, where probate isn’t a major obstacle. If your estate is relatively modest or if you don’t mind a public process, you might not be concerned about whether a will triggers probate. In Minnesota, there may even be simplified procedures for smaller estates. If your estate fits those thresholds, you might find the probate process manageable.
When A Will Might Be Enough
Many individuals choose a will when they have a straightforward plan for passing on property. If you have minimal real estate, a smaller asset portfolio, or a limited number of beneficiaries, a will may meet your needs. You can name guardians for minor children, leaving a clear record of who you trust to care for them if you’re not around. This can be especially valuable for younger parents.
A will is also easy to update when your wishes change. You can draft a new one or add a codicil (an amendment) if you experience shifts in your finances or personal life. If privacy isn’t a concern, or if you expect your estate to remain modest, you might be satisfied with this tool.
Naming guardians: You can specify who should care for your minor children
Distributing possessions: You can clarify who should receive your valuables and personal items
Easy to revise: You can change your will through a formal document or an amendment
While probate usually follows, some families find the process manageable, especially if there aren’t contested issues. That can make a will the simpler choice if you’re not looking to transfer assets like multiple properties or large business interests.
When A Trust Might Fit Better
A trust can offer more nuanced control over how beneficiaries receive their shares. If you’re worried about a child or grandchild mismanaging an inheritance, you can stipulate that the trustee release funds over time or for specific expenses like tuition or housing. That flexibility may be appealing if you want to encourage responsible use of what you leave behind.
Reducing public exposure: Trust details usually remain private, rather than entering public court records
Avoiding probate delays: Assets can often pass directly to beneficiaries, which might reduce wait times
Controlling distributions: You can schedule or restrict access to funds for younger heirs
Trusts can also help if you have real estate in multiple states. Owning property in multiple locations might subject your estate to separate probate procedures in each state, creating extra work for your family. By placing them in a trust, you may avoid that duplication and simplify the process.
Balancing Costs And Convenience
Wills are typically more affordable to set up compared to trusts, largely because a trust involves extra steps like transferring titles to property and making sure all assets are properly accounted for. However, while the upfront cost of a will might be lower, you shift more administrative responsibilities to your heirs, who must oversee probate.
Think about how your personal situation could evolve. If you only have a single home and a few accounts now, a will might feel sufficient. But if you plan to purchase more property or you’re concerned about how quickly beneficiaries can access assets, a trust might make sense sooner. Individuals sometimes start with a will and switch to a trust as their circumstances expand.
Maintaining And Updating Documents
Wills vs trusts both benefit from regular reviews, especially after major life events such as marriage, divorce, the birth of a child, or significant changes in wealth. You might also need updates if a named beneficiary passes away or if a trustee moves away and can’t manage the trust effectively.
Wherever possible, keep track of each version of your documents and note any changes you make. A confusing paper trail could create headaches for your loved ones. Whether you have a will, a trust, or both, clarity makes it easier for everyone involved.
Combining Both Approaches
Some people use both a will and a trust, known as a pour-over will arrangement. The trust becomes the main vehicle for distributing property, while the will “catches” anything not transferred into the trust. That might include minor assets you overlooked or newly acquired property you didn’t retitle before passing away. The will then “pours over” these assets into the trust, so everything ends up handled consistently.
This approach can be helpful if you want the trust to handle most of your estate but you’re worried about forgetting an asset or two. It also means that if you pass away unexpectedly, the will covers what you never moved into the trust. However, any assets that go through the will still face probate, so it’s still wise to move major property into the trust whenever possible.
Other Documents To Consider
Drafting a will or creating a trust isn’t the end of estate planning. You may want to name a power of attorney for finances or for healthcare decisions if you become incapacitated. You can also outline your wishes for medical interventions or funeral preferences. These documents often work together, each playing a separate part in protecting you and your loved ones.
Powers of attorney: Let someone handle your financial or medical decisions if you’re unable
Living will or healthcare directive: Explains your choices about life support or other treatments
Beneficiary designations: Keeps accounts like life insurance or retirement plans passing directly to named individuals
Taking a broad view of these elements helps you create a coordinated plan. Wills and trusts might only address some pieces, so consider whether you need additional components to cover other circumstances.
Contact Us Today
Amicus Law in Minnesota serves the entire state of Minnesota, including Hennepin County, Ramsey County, and Dakota County. A well-crafted estate plan can help you protect your property and offer clear instructions for family members.
When you weigh wills vs trusts, you’re more prepared to pick the approach that meets your goals. If you’re ready to talk about setting up or updating your plan, reach out to discuss how each option might fit your situation.
