When facing decisions about your estate plan, it’s natural to feel uncertain about how to make sure your wishes are honored. One of the most important questions is whether you should have a will or a trust. Both options come with their own benefits and potential challenges, and knowing which is best for your specific situation can bring peace of mind.
At Law Office of Julie A. Paquette, our legal advocates understand the complexities of estate planning in Michigan. With extensive experience in the legal field, our attorneys are here and ready to provide guidance every step of the way. Whether you’re considering a will or a trust, our compassionate and knowledgeable team can help you make the best decision for you and your loved ones.
What is a Will?
A will is a legal document that expresses your wishes regarding the distribution of your assets and property, as well as the care of any minor children after your death. In Michigan, for a will to be valid, it must comply with Michigan Compiled Laws § 700.2502, which requires the testator (the person making the will) to sign the document, and it must be witnessed by at least two individuals.
The key benefits of a will include the following:
- Simple to create: Wills are generally easier and less costly to set up than trusts, making them a common choice for those with smaller estates.
- Ability to name guardians for children: One of the most important features of a will is the ability to designate guardians for any minor children.
- Allows direct asset distribution: A will allows you to specify exactly who will inherit your assets and when they will receive them.
However, it’s important to note that in Michigan, wills typically go through the probate process, which is court-supervised. While probate ensures that your will is properly executed, it can sometimes be lengthy, expensive, and stressful for your loved ones. Hiring a reliable estate plan attorney can make the process significantly more streamlined than doing a DIY will.
What is a Trust?
A trust is a legal arrangement in which one person (the trustee) holds and manages assets for the benefit of another (the beneficiary). Unlike a will, a trust bypasses the probate process, which can make asset distribution quicker and more private. Under Michigan Compiled Laws § 700.7501, a trust is governed by specific provisions that outline how it must be created and maintained.
The advantages of a trust include:
- It helps avoid probate. One of the main advantages of a trust is that it allows your beneficiaries to avoid probate, potentially saving them time, money, and stress.
- It offers privacy. Unlike a will, a trust is not part of the public record. This means the details of your estate remain private.
- You have control over asset distribution. A trust provides more control over how and when your assets are distributed. You can set conditions, such as requiring a beneficiary to reach a certain age or milestone (like graduating college) before receiving their inheritance.
Types of Trusts in Michigan
In Michigan, several types of trusts may be appropriate depending on your needs. Some common types include:
- Revocable Living Trust: This is the most flexible type of trust because it can be changed or revoked during your lifetime. It helps avoid probate and allows you to maintain control over your assets while you are alive.
- Irrevocable Trust: Once established, this type of trust cannot be easily changed or revoked. It offers benefits like protection from creditors and estate tax reduction.
- Special Needs Trust: Designed for loved ones with special needs, this type of trust ensures they can receive financial support without jeopardizing their eligibility for government benefits.
- Charitable Trust: This trust allows you to leave a portion of your assets to a charitable organization while potentially benefiting from tax deductions.
At Law Office of Julie A. Paquette, we can help you determine which type of trust best suits your needs and goals and help you prepare all the documents you need to designate someone to manage your financial, legal, or healthcare decisions.
Should You Choose a Will or a Trust?
Now that you know the basics of wills and trusts, the question remains: which one is right for you? Several factors can influence your decision, and it’s important to evaluate your unique situation. These factors could be:
- Estate Size: If you have a small estate, a will may be sufficient. However, if you have significant assets, a trust may help your beneficiaries avoid the costs and delays of probate.
- Privacy Concerns: If privacy is a priority, a trust may be the better option because it does not become part of the public record.
- Control Over Asset Distribution: A trust allows you to dictate how and when your beneficiaries receive their inheritance, offering more control than a will.
- Time and Costs: A trust may take more time and expense to set up, but can save your beneficiaries time and money by avoiding probate after your death. It is also less stressful on your loved ones than the probate process.
By working with an experienced estate planning attorney, like those at Law Office of Julie A. Paquette, you can create a plan that reflects your current specific needs and desires. We’ll help you decide whether a will, a trust, or a combination of both is best for you and your family.
Common Myths About Wills and Trusts
Many misconceptions surround wills and trusts, and understanding the truth can help you make an informed decision.
Myth #1: Only the Wealthy Need a Trust
While trusts are often associated with large estates, they can be beneficial for individuals at many different income levels.
Myth #2: Wills Avoid Probate
Contrary to popular belief, wills must go through probate, while trusts can help bypass this process entirely.
Myth #3: Trusts Are Too Complicated
While a trust may require more initial setup, it can offer greater control and flexibility over the long term.
Deciding whether to create a will or a trust in Michigan depends on your specific circumstances and goals. An estate planning attorney with extensive experience in Michigan’s estate planning laws and procedures will ensure that your wishes are carried out. They will work to ensure that your family is protected in the future—make sure to also check with them regarding the beneficiary designations you already made!
Contact Our Michigan-Based Estate Planning Attorneys at Law Office of Julie A. Paquette Today
Both options—wills and trusts—have unique advantages, and in some cases, a combination of a will and a trust may offer the most comprehensive protection for you and your loved ones. The key is to create an estate plan tailored to your needs.
Whether you choose a will, a trust, or a combination of both, our dedicated team at Law Office of Julie A. Paquette is here to answer your queries and guide you through every step of the process.
Contact us today to schedule an appointment and start planning for your future with confidence.
