When it comes to estate planning, one of the most common questions people ask is whether they need a will, a living trust, or both. The answer depends on your goals, your assets, and how you want things handled in the future.
For individuals and families in Colorado Springs, estate planning often involves real estate, retirement accounts, and long-term plans to remain active in the community. Understanding the difference between wills and living trusts can help you make informed decisions that fit your life.
What a Will Does
A will is a legal document that outlines how your assets should be distributed after your death. It also allows you to name a personal representative (executor) and guardians for minor children.
When a Will Takes Effect
A will only becomes effective after death and must generally go through probate, which is the court-supervised process of settling an estate.
What a Will Covers
A will can:
- Direct how assets are distributed
- Name guardians for children
- Appoint a personal representative
However, a will does not control assets with beneficiary designations or jointly owned property.
What a Living Trust Does
A living trust is created during your lifetime and holds ownership of assets placed into it. You typically serve as your own trustee while you’re alive and name a successor trustee to step in later.
How a Living Trust Works
Assets that are properly transferred into a living trust can be managed during your lifetime and distributed after death without going through probate.
Benefits of a Living Trust
Living trusts are often used to:
- Avoid probate
- Provide privacy
- Plan for incapacity
Streamline administration for loved ones
For many Colorado Springs residents, this can mean fewer delays and less court involvement for family members.
Wills vs. Living Trusts: Key Differences
Probate vs. Non-Probate
One of the biggest differences is probate. Wills typically require probate, while living trusts can avoid it if properly funded.
Privacy
Probate is a public process. Living trusts generally allow for private administration, which some families prefer.
Incapacity Planning
A will does not help if you become incapacitated. A living trust allows a successor trustee to step in and manage trust assets without court intervention.
Do You Need One or Both?
When a Will May Be Enough
A will may be sufficient if you:
- Have a smaller or simpler estate
- Do not mind probate
- Do not own real estate or have complex assets
When a Living Trust May Be a Better Fit
A living trust may make sense if you:
- Own real estate
- Want to avoid probate
- Are planning for long-term incapacity
- Want a smoother transition for loved ones
Many people use both—a living trust for asset management and a will (often a pour-over will) to address anything not titled in the trust.
Common Misconceptions
“Living Trusts Are Only for Wealthy Families”
Living trusts are often used by middle-income families who want clarity and efficiency, not just those with large estates.
“If I Have a Trust, I Don’t Need Other Documents”
A living trust is only one part of a complete estate plan. Powers of attorney and healthcare directives are still essential.
How Colorado Law Fits In
Colorado has a relatively streamlined probate process compared to some states, but probate can still take time and effort. For Colorado Springs families, the choice between a will and a living trust often comes down to convenience, privacy, and planning for the unexpected.
Choosing What’s Right for You
There is no single right answer for everyone. The best estate plan is one that reflects your goals, your family, and how you want things handled both now and in the future.
If you’re weighing whether a will, a living trust, or a combination of both makes sense, having guidance can bring clarity. Our team at Mason Law & Planning Group works with individuals and families in Colorado Springs to create estate plans that are practical, clear, and aligned with their goals. Reach out through our website or give our office a call to find a time that works for you.