Wills

• A will is a document through which you identify who will be the executor of your estate and how you would like your assets to be distributed among your heirs after you die. A will must go through the probate process, which is different in every state. The only similarity across the board is that the probate process requires payment of taxes on all of your assets by your heirs.
  
  

Living Trust

• Living trusts are different from wills because they take effect while you are still alive and allow you to transfer your assets into them during your lifetime. By transferring your assets while you are still alive, you can avoid probate taxes and provide more of your assets to your heirs. Additionally, a living trust makes it easier for your executor to distribute your assets.
  
  

Trusts

• A testamentary trust is a document explaining how you want property to be held and distributed to beneficiaries. A testamentary trust also allows you to avoid the probate process. The main elements of a trust include the beneficiaries, the trustee, the property to be distributed and the rules governing how the trust can be used. There are several different types of trusts, but any trust you form must be in accordance with state and federal laws.
  
  

Considerations

• It is very common to have both a will and a living trust as some states require that you create a will in order to name guardians for your minor children should you die before they reach adulthood. If you die without a will or a living trust, your assets will go through the probate process and will be distributed according to state law.