Wills and trusts have a lot in common. Both play an important role in estate planning, helping you manage, protect and distribute your assets. Wills and trusts also allow you to appoint people you trust to carry out your wishes.
While these tools are very similar, they both serve different purposes. It is important to familiarize yourself with what wills and trusts are and what distinguishes them.
What is a trust?
A trust is a legal agreement in which a trustee oversees your assets to benefit your beneficiaries, often your minor children. Trusts help protect assets from creditors, reduce taxes, maintain privacy and avoid probate.
Like a will, a trust is part of estate planning, allowing you to specify who gets your assets. To make it work in Georgia, you must fund the trust by transferring property or accounts to the trustee.
To comply with Georgia law, a trust must be in writing and include your intention to create it, a list of property, a named beneficiary, a trustee and the trustee’s duties. This ensures your assets are managed and distributed according to your wishes.
What is a will?
While trusts are one way to plan your estate, a will is another key tool for making sure your family carries out your last wishes. It outlines how to handle your estate and guardianship of minor children should be handled after your passing. Without a will, Georgia courts decide how to distribute your assets. If you have no relatives, spouse or children, your estate may go to the state.
For a will to be valid in Georgia, you must write it out. There are also specific conditions you must meet:
- You must be at least 14 years old, of sound mind and sign the document — or have someone sign for you.
- You must have two witnesses, who must also be at least 14 and cannot be beneficiaries, who will watch you sign before signing themselves.
It is important to review and update your will periodically, especially after major life events such as marriage, divorce or the birth of a child.
Using wills and trusts together to strengthen your estate planning
Trusts and wills are key tools in estate planning that work together to protect and distribute your assets. Wills allow you to appoint guardians to look after your minor children after you pass away, while trusts let you manage assets even in life. Using both lets you handle your estate smoothly, cover situations that one document alone cannot address and protect your loved ones.
When planning wills and trusts, taking it step by step helps you create a secure future for your family. Every decision provides clarity and peace of mind and helps provide care for your loved ones long after your passing.
