Idaho Wills vs. Trusts: What's the Difference?

What Is the Difference Between a Will and a Trust?

Both wills and trusts are included in many estate plans, but their roles are distinct. Each of these tools outlines your wishes, although they function in different ways.

A will is a legal document that explains how you want your assets to be distributed after you pass away. These assets might include your home, your savings, and your personal property. Writing a will is a simple yet effective way to ensure your wishes are carried out.

In your will, you can appoint someone whom you trust as an executor. This person will manage your estate and oversee the distribution of your assets according to your instructions.

A trust is a special legal arrangement in which you place certain assets into a separate account. You might use a trust to manage complex assets, protect your finances from potential legal issues, or reduce your taxes.

You’ll name a trusted person or entity (the trustee) to manage the assets and distribute them according to your instructions.

What Should I Choose — a Will or a Trust?

Many estate plans involve both a will and a trust, although wills are more common. A will is an efficient way to distribute a simpler estate with fewer assets. But if you have a more complex situation involving real estate, businesses, or substantial investments, a trust can offer greater control and protection.

Trusts provide an added layer of protection from potential lawsuits or creditors. And if avoiding the probate process is important to you, you can use a trust to streamline the distribution of your assets.

Additionally, a will must be admitted to the court and go through probate. In contrast, many types of trusts can skip the complicated and often slow-moving probate process.

• Consider a will if: Your situation is relatively straightforward. Perhaps you're married with adult children and want to leave everything to your immediate family members.
• Consider a trust if: You own a business, have significant assets, want to avoid probate, or need to provide for family members with special needs.

Consult with an experienced estate planning attorney to weigh the costs and benefits of each option and create a personalized plan for your assets.

Explore this table with differences between wills and trusts:

Explore Additional Questions About Wills and Trusts in Idaho

A will can be a great option if your financial situation is straightforward. For instance, if you have a clear idea of how you want your assets to be distributed, you can work with a lawyer to write a legally sound will that will specify your wishes.

However, there's one important drawback to relying on a will: It requires a legal process called “probate”. This means a court will review your will and ensure it's valid. Sometimes, probate goes smoothly. However, the process can be time-consuming and expensive for larger or more complex estates.

What Happens If You Don't Have a Will?

Like many states, Idaho follows the Uniform Probate Code. If you die without a will in Idaho, the state will rely on this code as a default plan for distributing your assets.

Under the Uniform Probate Code, your assets are distributed according to established family relationships. However, this distribution might not align with your wishes. That’s why it's crucial to create a will that allows you to make the best decisions for your loved ones.

What Types of Wills Are Available in Idaho?

Laws about wills vary by state. Here are three types of wills that Idaho courts recognize:

• Traditional will: The most common type of will in Idaho allows you to specify not only who receives your assets but also how and when they receive them. You can include specific bequests, like leaving your grandfather's watch to your eldest son or your collection of books to a local library. The document also lets you name an executor — someone you trust to carry out your wishes and manage the distribution of your assets.
• Pour-over will: If you have a trust but accidentally leave some assets out of it, a pour-over will automatically "pour" any remaining assets into your trust after your death. This ensures everything runs smoothly in your estate plan. For example, if you purchase a new car but forget to add it to your trust, the pour-over can ensure it still ends up where you intended.
• Holographic will: This is a legal term for a handwritten will. It must be written in your own handwriting and signed and dated by you. Idaho accepts holographic wills, but they often create more problems than they solve. They frequently face challenges in court due to unclear language or questions about authenticity.

No matter the type of will, it’s a good idea to let your family members know how to locate it in the event you pass away unexpectedly.

What Types of Trusts Are Available in Idaho?

Your estate planning lawyer can help you set up an irrevocable trust, a revocable living trust, or both. Here’s the difference:

• Irrevocable trust: This type of trust is designed to protect your assets. Once you set it up, you can't easily change or revoke it. An irrevocable trust can shield certain assets from potential lawsuits or creditors and reduce certain tax liabilities. While this type of trust offers strong benefits, you lose control over the assets once you create the trust. Instead, a trustee manages them according to your instructions.
• Revocable living trust: You can change the terms of this type of trust or even revoke it during your lifetime. It offers one big advantage: bypassing probate. When you have a revocable living trust, your assets will be distributed according to your instructions without going through probate court.

Trusts allow you a way to take care of your loved ones both during your life and after you are gone.

Exceed Legal — Your Dedicated Trusts and Wills Lawyers

With careful planning, you can secure your legacy and protect your loved ones.

Whether you are considering a will or a trust, turn to an estate planning lawyer at Exceed Legal for personalized guidance. We’ll discuss your needs and create a plan that provides you with peace of mind. Schedule a consultation with our experienced attorneys at Exceed Legal today!