“Will” and “trust” are familiar terms you begin to hear more frequently as you age, but do you understand the difference between them? Furthermore, do you know which document will best protect your family and hard-earned assets? While a will and trust may have a lot of similarities, they also have many differences.   

Wills 

1) What is a will?  

A will, or also known as a last will and testament, is a legal document that describes how you would like your property and other assets to be distributed after your death.  

2) Who should consider creating a will?  

If you have assets such as a home, car, checking or savings account, then you have an estate and will need a plan to provide for the proper transfer of that property when you pass away.  

3) Why consider a will?  

Establishing a will saves time, money, and stress for your loved ones once you’ve passed. It dictates who will manage your estate and, ultimately, identifies who will receive your assets and property. A will can even designate a guardian if you have minor children. Not having a will in place can make it more difficult for your loved ones to finalize your affairs. It may even leave the door open for family disputes. 

4) When should you consider creating a will?  

Once you become a legal adult, it’s a good idea to start thinking about creating your will. It can help you assess what would be left behind after you’ve passed, who you would want to have it, and how you’d like your belongings to be handled. You’ll then want to maintain your will by updating it every three to five years.   

5) Where can you obtain a will?  

As a military servicemember or a retired military member, you can access Judge Advocate General (JAG) corps legal services. JAG can also help you with your estate planning. If you are not affiliated with the military, a will can easily be created online through an array of online estate planning websites. Another option is to hire an estate planning attorney.  

Trusts 

1) What is a trust?  

A trust is a fiduciary arrangement allowing a third party, or trustee, to hold and manage assets for a specific purpose or people.such as family members or business associates.. There are three parties involved with a trust: 

• Grantor — The person who establishes the trust and gives the trustee the right to hold the assets. 
• Trustee — The person who holds the title to the assets and explains the trust’s terms to the beneficiary. 
• Beneficiary — The person or entity who benefits from the assets.  

2) Who should consider a trust?  

If you have a more complex estate to leave behind, it would be wise to establish a trust. Examples of what could make your estate more complicated include large assets, difficult and in-depth investment accounts, children from a prior marriage or children with special needs. 

3) Why have a trust?  

A trust gives you the ability to define plans and limitations for beneficiaries — and you can specify exactly what you want to do with every single one of your assets. A trust can also provide assets to beneficiaries while you’re still living.  

4) When should you consider establishing a trust?  

Life circumstances will help you determine if it is the right time to establish a trust. If you have young children, accumulated wealth, or valuable assets, it may be an appropriate time to set up a trust.  

5) Where can you obtain a trust?  

As a military servicemember, or retired servicemember, a JAG corps can prepare wills, but typically do not make Revocable Living Trusts. A JAG may create a “testamentary trust,” which is created after death to hold money for a child until he or she reaches adulthood. You should also call your local JAG office to determine which services are provided — or hire an estate planning attorney to guide you through the trust-making process.  

Wills vs. Trusts 

While a will can be a much simpler process, a trust is added protection to cover your assets and ensure they are distributed appropriately. Trusts can avoid probate, the court process for distributing your property whereby wills typically must go through probate. It is wise to take time looking over your assets to help you determine the appropriate document that will best fit your needs. It is your own personal decision to create a will or a trust to protect and direct your assets. Always seek professional guidance by consulting with a licensed attorney for any estate planning needs. 

Get the Help You Need Through AAFMAA 

AAFMAA Members can benefit from legal document services provided by LawAssure through our partnership with AUSA. LawAssure will help you draw up wills, simple trusts and other legal documents designed by attorneys and are specific to your state of residence. Log into the AAFMAA Member Center to access this valuable Member benefit.  

For more information about wills and trusts, contact a Member Benefits Coordinator at 800-522-5221, select option 2, then option 2 again or email [email protected].