If you’re planning your estate in Pennsylvania, one of the biggest decisions you’ll face is whether to use a will, a trust, or both. Each tool serves a different purpose and offers unique benefits. Understanding the differences can help you make the right decision for your family and financial future.
At Petrelli Previtera, we guide individuals and families in Philadelphia through thoughtful estate planning. This can include when and how to use wills, trusts, or a combination of both. Here’s what you should know.
Key Takeaways
What Is a Will?
A Last Will and Testament is a legal document that outlines how your assets should be distributed after your death. In your will, you can:
- Name beneficiaries
- Appoint a guardian for your minor children
- Designate an executor to carry out your wishes
However, wills go through probate a court-supervised process that can be time-consuming, public, and sometimes costly.
Pros of a Will
- Simpler and less expensive to set up
- Clearly outlines your final wishes
- Allows you to name a guardian for minors
Considerations of a Will
- Must go through probate
- Can be challenged in court
- Becomes public record
What Is a Trust?
A trust is a legal entity that holds and manages your assets on behalf of your beneficiaries. You can create a revocable living trust during your lifetime, allowing you to manage the assets and make changes. Upon your death, the successor trustee takes over to distribute assets according to your instructions without going through probate.
Pros of a Trust
- Avoids probate
- Keeps your affairs private
- May reduce estate taxes
- Can provide ongoing management of assets for minor or special needs beneficiaries
Considerations of a Trust
- More expensive to set up
- Requires active management during your lifetime
Real-World Example
One of our clients had a sizable estate with properties in multiple states. By using a revocable trust, they avoided having their heirs go through probate in each jurisdiction that saves time, legal fees, and emotional strain.
Key Differences Between a Trust and a Will
|
Feature |
Will |
Trust |
|---|---|---|
|
Goes Through Probate |
Yes |
No |
|
Privacy |
Public record |
Private |
|
Takes Effect |
After death |
Can take effect during life |
|
Guardianship |
Yes |
No (needs a separate will) |
|
Cost to Set Up |
Lower |
Higher |
|
Asset Control |
Limited after death |
Allows control and conditions |
What’s Right for You?
Choosing between a will and a trust depends on your goals, assets, family dynamics, and long-term wishes. Many families in Philadelphia benefit from a combined approach, a will to handle guardianship and personal instructions, and a trust to avoid probate and manage high-value or complex assets.
We Can Help
At Petrelli Previtera, LLC, we tailor estate plans to your unique situation. Whether you’re drafting your first will or exploring the benefits of a trust, we’re here to help you plan with clarity and confidence.
Schedule a consultation today to protect your legacy and bring peace of mind to your loved ones.