Trusts vs. Wills: What Georgia Families Need to Know

Estate planning isn’t just about passing down assets; it’s about making sure your wishes are honored and your loved ones are protected. In Georgia, two essential tools help accomplish that: wills and trusts . While both serve important roles, they operate differently, especially when it comes to probate, incapacity planning, and asset protection.

 

Understanding the strengths and limitations of each can help you build a plan that avoids unnecessary delays, reduces stress for your family, and preserves more of what you’ve worked hard to build.

What a Will Does and What It Doesn’t

A will is a legal document that takes effect only upon your death. In it, you can:

• Designate who receives your assets
• Appoint a guardian for minor children
• Name an executor to oversee your estate

Wills are relatively simple to create and easy to update. However, they must go through probate , the court-supervised process of validating the will and distributing assets. In Georgia, probate is public, can take months to complete, and may result in additional expenses for your estate.

Wills also offer no protection during your lifetime . If you become incapacitated, a will won’t help manage your affairs. You’ll need a power of attorney or other legal tool in place.

 

How Trusts Work in Georgia

A trust is a legal entity that holds property on behalf of beneficiaries. Unlike a will, a living trust (also called a revocable trust) is created during your lifetime and becomes effective immediately. You can act as your own trustee while you're able, and name a successor trustee to take over if you become incapacitated or pass away.

Trusts can be tailored to your goals, and Georgia law allows both revocable and irrevocable trusts, depending on your needs. Trusts are especially valuable for:

• Avoiding probate
• Maintaining privacy
• Managing property during incapacity
• Creating structured distributions for beneficiaries
• Facilitating multigenerational planning

Trusts do require more planning upfront, and real estate or financial accounts must be properly retitled into the trust to avoid probate.

 

Probate and Privacy Considerations

In Georgia, a will must go through probate to become effective. This public process can create delays, open your estate to creditor claims, and increase costs. Georgia does offer some unique probate provisions, such as the Year’s Support allowance for surviving spouses and minor children, but most families prefer to minimize probate when possible.

 

Trusts, by contrast, avoid probate entirely. Assets held in a trust are distributed according to its terms, without court involvement, offering privacy and efficiency.

 

Planning for Incapacity

Wills have no effect if you're alive but unable to manage your affairs. That’s where trusts shine.

With a living trust, if the grantor becomes incapacitated, the named successor trustee can step in immediately to manage trust assets with no need for a court order or guardianship proceedings. This feature is especially valuable for aging individuals or families with complex financial holdings.

 

Asset Protection and Estate Control

While revocable living trusts do not protect assets from your creditors during your lifetime, they become more protected after death. In contrast, certain irrevocable trusts offer stronger asset protection and are often used in advanced estate planning or Medicaid planning strategies.

 

Wills offer no asset protection during life and expose all assets to probate-related creditor claims after death.

 

When to Use a Will, a Trust, or Both

• A will is often appropriate for smaller estates, appointing guardians, and when simplicity is the priority.
• A trust is more suitable for larger estates, those with privacy concerns, or those wanting to avoid probate and prepare for incapacity.
• Many Georgia families benefit from using both a trust for major assets and a “ pour-over will ” to ensure anything not titled in the trust is still distributed according to your wishes.

Georgia-Specific Considerations

• Georgia presumes trusts are irrevocable unless stated otherwise , which differs from many other states.
• Real estate must be deeded directly into the trust ; otherwise, it will pass through probate, even if the trust is mentioned.
• An estate plan should always reflect Georgia law , which may change over time, making periodic review essential.

Build a Plan That Protects Your Family

Wills and trusts aren’t one-size-fits-all. The best approach depends on your family’s needs, the assets you own, and how you want to manage or pass on your legacy. At Dyer Rusbridge Argo, P.C. , we help Georgia families build estate plans that work today and adjust as life changes.

Whether you need to establish a plan or review an existing one, now is a good time to ensure your documents reflect your current goals and Georgia law.

 

Feel free to give us a call at (770) 479-7418  or contact us online to schedule an estate planning review.