Whether you are coming to your later years in life or you are just seeking to look out for your loved ones in case something unexpected happens, a will or trust is a way that many people in California are able to ensure that their postmortem wishes are enacted with their best interests in mind. If you are trying to decide whether you need to be drafting a will, a trust or both, it is helpful to understand the difference between the two.
How a trust works
CNN states that a trust determines the distribution of your assets after you die. It does not cover other wishes, such as guardianship of children and distribution of personal items. One reason that you may draft a trust is to reduce taxes on your estate. If your net worth is large enough that the cost of estate taxes would exceed the cost of actually establishing the trust, it might be a good idea.
How a will works
There are a few differences that stand out between wills and trusts. A will enables you to name the executor who will handle the distribution of your estate. It also allows you to designate a legal guardian for any children who outlive you. Be careful, though, as if you have any insurance policies or financial accounts with named beneficiaries, these will take precedence over anyone named in a will.
This information is intended to inform you of the difference between wills and trusts, and should not be used as legal advice.