Wills vs Trusts in Simple Terms

Paula Usrey

50plus Magazine

Setting up a Will or Trust may sound complicated, but it isn’t. Aiming to present a clear explanation of the difference, I consulted my son, Ben James, who is an expert in estate planning and has a degree in finance, multiple specialty certifications, and 27 years in the business.

In simple terms, Ben said, “A Will is the document that governs the probate process. Many people falsely believe that a Will somehow helps them avoid probate. The truth is, a Will is meant for probate.”

Ben explains that one way to generally avoid probate with a Will is to use a T.O.D. (Transfer on Death) for real property, and a P.O.D. (Payment on Death) for funds held with financial institutions.

“A Trust helps you avoid probate by allowing you to pass things directly to your beneficiaries,” Ben says, adding that Trusts are also “a matter of private record,” as opposed to Wills, which are public.

At one time, Trusts could be costly to create. However, Ben notes, “Most people now have access to trust documents and assistance in getting them completed for less than $500.”

Several years ago, I myself set up a Will and both a T.O.D.and a P.O.D. on my son’s advice. I found the correct T.O.D. document online for Oregon, completed it, and submitted it to my county’s recording office. I then went to my bank and asked them to set up a P.O.D. for my accounts.

Changes in my life in recent years led me to want to set up a Trust to replace my Will. With an established partnership between Ben’s business and a company called Trust & Wills, we completed the Trust online in approximately 20 minutes; it was simple. The documents were then sent to me for notarizing and filing. If I lived closer to Ben’s office, the notarizing, paper handling, and filing could have been handled there. Instead, I followed step-by-step instructions to easily complete the process myself.

If you need help, talk with a financial advisor with expertise in estate planning, or an estate attorney.

Paula Usrey is a retired associate professor of communication and writes about living our best lives after fifty.