Do You Still Need a Will If You Have a Trust?
Estate Planning
When people create a trust, especially a revocable living trust, they often assume they no longer need a will. After all, your trust is supposed to hold and distribute assets outside of a will.
Unfortunately, whether you have a trust or not, you’ll still need to create a will. The trust is simply another essential part of your estate plan. In Pennsylvania, trusts and wills serve different but complementary purposes. Having both ensures that your wishes are fully carried out and that your family is financially protected.
How a Trust Works
A trust is a legal arrangement where the grantor transfers assets to the grantee. Then, the grantee manages the assets for the benefit of the beneficiaries. Revocable trusts are an especially popular type of estate planning tool in PA for a few key reasons.
- It allows you to maintain control of assets during their lifetime.
- It avoids probate, which reduces the amount of time and money you spend.
- It provides continuity of management if you become incapacitated.
Once you pass away, the trustee distributes the assets in the trust according to your instructions. It’s essential to remember that a revocable trust still has tax obligations after you pass. If you opt for an irrevocable trust, you can reduce the tax burden in exchange for less control.
Both types of trusts are also only able to control assets that have actually been transferred into them. That’s why a will still plays an important role in your trust and estate planning process.
Why You Still Need a Will When You Have a Trust
Even if you set up a trust, there are several important reasons why you should still write a will in Pennsylvania. If you are uncertain about the best options for your estate, our Pennsylvania will and estate attorneys can help.
1. To Cover Assets Not Placed in the Trust
Under 20 Pa.C.S. §§ 2101–2108, any assets that aren’t covered by a will must be processed according to Pennsylvania’s intestacy law. In many cases, the way this law processes assets will not be the way you’d prefer to distribute them.
While you might assume that it’s not an issue because everything is in your trust, it’s easy to forget to add new assets to the trust as you acquire them. People often purchase new real estate properties, cars, and personal belongings after they make a trust. If you don’t add every single one of these things to your trust, it will be distributed according to Pennsylvania’s intestacy laws instead of your wishes.
To ensure your last wishes are carried out, you should create a pour-over will as a safety net. This type of will directs that any assets not already in your trust at the time of your death be transferred into the trust, ensuring consistency in how everything is managed and distributed.
2. To Name Guardians for Minor Children or Children With Special Needs
A trust might be able to ensure assets are received by your children, but it can’t dictate how your children are cared for. If you have minor children or children with special needs, you need a will that specifically names who will become the guardian of your children if something happens to you.
3. To Handle Personal Belongings
Smaller personal property, like family heirlooms, jewelry, or household goods, may not always be transferred into a trust. By making sure you complete and update your will, you can ensure that all of these smaller items and assets are disposed of according to your wishes.
4. To Appoint an Executor
According to 20 Pa.C.S. Chapter 33, the executor has certain obligations. They must inventory the estate, pay the estate’s debts, and file tax returns. When everything is wrapped up, they are in charge of distributing all of the assets to the beneficiaries. Your will is where you get to specify who you want your executor to be. Without a will, the court decides who takes on this role.
5. To Avoid Intestacy
One of the most important reasons to get a will is to avoid intestacy. This is essentially the term for what happens to estates that don’t have a will. It means that any assets not in your trust will be distributed according to Pennsylvania’s intestacy laws, regardless of what your intentions are. All of your non-trust assets could end up with a relative you never see. Alternatively, a loved one you cared about could end up with nothing.
Trusts and Wills: Working Together
When it comes to your PA estate planning, your trust and will are designed to work together in perfect concert. The trust manages and distributes assets, potentially leading to better privacy, lower taxes, and no probate. Meanwhile, the will covers anything outside of the trust. It ensures you have the right executor and a clear legal guardian for your children. Together, they create a strong plan that avoids gaps and reduces the risk of disputes among heirs.
Learn More About PA Wills and Trusts
If you are ready to take the next step in writing your will, our PA will lawyers can help. We serve clients throughout Newfoundland, Tafton, Pocono Pines, Stroudsburg, East Stroudsburg, Wilkes-Barre, and the surrounding areas. Our skilled attorneys can simplify the entire will and trust process, so your family is protected.
Find out more by reaching out to the Clause Law Group today.
