In the state of Pennsylvania, there are two main legal documents that individuals can use to plan for the distribution of their assets after their death: a will and a trust. While both serve a similar purpose, there are some key differences between the two. Let’s look at Wills vs Trusts in Pennsylvania. 

  1. Definition 

A Will is a legal document that outlines how a person’s assets will be distributed after their death. It also names an Executor who will be responsible for carrying out the instructions in the Will. 

A Trust, on the other hand, is a legal arrangement where a person (the Grantor) transfers their assets to a Trustee, who then manages those assets for the benefit of the beneficiaries named in the Trust. 

  1. Probate Process 

One major difference between Wills and Trusts is the probate process. Probate is the legal process of validating a Will and distributing assets according to its instructions. In Pennsylvania, the probate process can be costly and time–consuming, often taking several months to a year to complete. 

A Trust, however, does not go through probate because the assets are already owned by the Trust and managed by the Trustee. This means that the distribution of assets to beneficiaries can happen much faster and with less cost. 

  1. Privacy 

Another difference between Wills and Trusts is privacy. Wills are public documents and can be accessed by anyone after the individual’s death. This means that the details of the individual’s assets and beneficiaries will become public knowledge. 

A Trust, on the other hand, is a private document and does not go through probate, so its details remain confidential. 

  1. Control over Assets 

In a Will, the individual has control over how their assets are distributed after their death. However, once the Will is probated, the Executor is responsible for carrying out those instructions. 

In a Trust, the Grantor can specify how and when their assets will be distributed to the beneficiaries. This allows for more control over how the assets are managed and distributed. 

  1. Protection from Incapacity 

A Trust can also provide protection in case of incapacity. If the Grantor becomes incapacitated, the Trustee can continue to manage the assets for the benefit of the Grantor without the need for a court–appointed guardian. 

A Will, on the other hand, only goes into effect after the individual’s death and does not provide any protection in case of incapacity. 

Wills and Trusts serve different purposes and can be used together in an estate plan. Wills are more suitable for simple estates, while Trusts provide more control, privacy, and protection for assets. It is important to consult with a legal professional to determine which option is best for your specific situation.