Do You Need A Trust Or A Will? Understanding Your Options In Wisconsin

Planning for the future is one of the most important steps you can take to protect your loved ones and ensure that your assets are distributed according to your wishes. However, many Wisconsin residents are unsure whether they need a will, a trust, or both. Understanding the differences between these estate planning tools can help you make the best decision for your situation.

At Bosshard Parke, we assist individuals and families in La Crosse, Sparta, and surrounding areas with creating comprehensive estate plans. Below, we’ll explore the differences between wills and trusts, their benefits, and how to determine which option is right for you.

What Is A Will?

A will is a legal document that outlines how your assets will be distributed after your death. It allows you to name beneficiaries, appoint a personal representative (executor) to handle your estate, designate guardians for minor children, and specify any final wishes regarding your estate and funeral arrangements.

How A Will Works In Wisconsin

When someone passes away with a will, their estate must go through probate, a court-supervised process that ensures debts are paid and assets are distributed according to the will. The probate process in Wisconsin can take several months to over a year, depending on the complexity of the estate. For smaller estates (generally under $50,000 in assets otherwise subject to probate), Wisconsin law affords a simpler nonjudicial method of transferring estate assets by the estate representative signing an affidavit.

Advantages Of A Will

A will is generally simpler and more affordable to create than a trust. It allows you to provide instructions for distributing your assets and can name a guardian for minor children, which is especially important for young families.

Disadvantages Of A Will

Since a will generally must go through probate, the process can be time-consuming and costly for beneficiaries. Additionally, wills become part of the public record, meaning anyone can access information about your estate. A will also does not protect assets from creditors, lawsuits, or long-term care costs.

What Is A Trust?

A trust is a legal arrangement where you transfer assets into a trust, which is managed by a trustee for the benefit of your chosen beneficiaries. Unlike a will, a trust takes effect while you are still alive and continues to function after your death.

How A Trust Works In Wisconsin

The most common type of trust in Wisconsin is a revocable living trust, which allows you to manage your assets while you are alive and designate a successor trustee to take over upon your passing. One of the biggest benefits of a trust is that it allows your beneficiaries to inherit assets without going through probate.

Advantages Of A Trust

A trust can help your family avoid probate, saving time and money. It provides privacy, since it does not become part of the public record. Trusts are also useful for incapacity planning, allowing a successor trustee to manage assets if you become disabled or unable to make financial decisions.

Trusts offer more control over how and when your assets are distributed, which can be beneficial if you have minor children or want to place restrictions on how heirs receive their inheritance. Certain types of trusts can also protect assets from creditors, lawsuits, and nursing home costs.

Disadvantages Of A Trust

A trust is more complex and expensive to set up compared to a will. It also requires that assets be retitled in the name of the trust, which can be an extra step that some individuals may find cumbersome. Additionally, while a trust avoids probate, it does not eliminate the need for a will, as a backup “pour-over will” is often necessary to cover any assets not included in the trust.

Choosing Between A Will And A Trust In Wisconsin

The best option for you depends on your financial situation, family structure, and estate planning goals.

A will may be a good choice if you have minor children and need to name a guardian, have a small estate, or do not mind going through probate. It is also a practical option if you prefer a simple and cost-effective estate plan.

A trust is ideal if you want to avoid probate, have complex assets, own property in multiple states, or wish to protect your estate from creditors or long-term care expenses. A trust is also a great tool for those who want privacy and more control over how assets are distributed to beneficiaries.

Many Wisconsin residents benefit from having both a will and a trust. A trust can manage most assets and help avoid probate, while a will can serve as a backup plan for any property not included in the trust. This combination ensures a well-rounded estate plan that provides for your family and protects your legacy.

How Bosshard Parke Can Help

Estate planning can feel overwhelming, but you do not have to navigate it alone. At Bosshard Parke, our experienced attorneys can help you:

• Determine whether a will, trust, or both is right for your situation
• Draft legally sound documents tailored to your needs
• Ensure your assets are properly titled and protected

Whether you are just starting your estate plan or need to update an existing one, we are here to help. Contact Bosshard Parke today to schedule a consultation.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Please consult an attorney at Bosshard Parke for personalized estate planning guidance.