When families in Illinois plan for the future, one of the first questions is whether they need a will, a trust or both. Each works differently.

What is a will?

A will says who receives your property at death, names an executor and lets you name a guardian for minor children. It can be changed as your life changes. Assets passing under a will generally go through probate, the court-supervised process of settling an estate, which takes time and is public.

What is a trust?

A living trust holds assets under the management of a trustee for your beneficiaries. With a revocable trust, you usually serve as your own trustee during your lifetime and can change it at any time. An irrevocable trust generally can't be changed and is used for specific tax or planning goals.

Assets properly titled in a trust generally pass without probate, often more quickly and privately.

Key differences

Probate

Assets passing under a will generally go through probate. Assets held in a funded trust usually don't. See probate and estate administration.

Privacy

A will filed in probate becomes a public record. A trust generally stays private.

Incapacity

A trust lets a successor trustee manage trust assets if you become unable to. A will only takes effect at death, so you'll also want powers of attorney for property and health care.

Guardians for children

Only a will can nominate a guardian for minor children, which is why families with young children need one even if they also have a trust.

When a will may be enough

For a simpler estate, particularly one without real estate, a will plus beneficiary designations and powers of attorney may cover your needs.

When a trust makes sense

A trust is worth considering if you own real estate, especially in more than one state; want to avoid probate; have a blended family; want to control how and when children receive assets; or have a family member with special needs whose benefits must be protected.

Using both

Many plans combine a living trust with a "pour-over" will that moves any assets left outside the trust into it at death. For real estate specifically, some Illinois families also use a land trust or transfer-on-death instrument.

Final thoughts

The right plan depends on your family, your property and your goals. See estate planning or schedule a consultation.

By Attorney Shara Kamal. General information for Illinois readers; not legal advice for a specific situation.