A will is a legal document that instructs the court how to distribute your property after you die. A trust is a legal arrangement where ownership of your assets is transferred to a trustee, who oversees and distributes them to your beneficiaries.
A will and a trust serve different purposes and operate under different rules, especially once probate or long-term care costs enter the picture. Georgia’s Medicaid look-back period makes the timing of a trust especially important to your family’s future.
Our estate planning lawyers in Woodstock have helped hundreds of Georgia families create a strategy that makes smart use of wills, trusts, and other legal documents. Call today to schedule your free Legacy Planning Meeting, and we can help you choose the best path forward.
What Is a Will?
A will is a legal document that directs how you want your property and assets distributed after your death. It allows you to name the person responsible for carrying out your wishes, known as an executor. If you have minor children, you can designate guardians.
In Georgia, a will must go through probate before it takes effect. The court must review the will to confirm its validity. It then authorizes the distribution of assets according to the terms.
While a will is an important part of an estate plan, it has limitations. It does not protect your assets from creditors or potential nursing home costs, and because it is filed with the probate court, it becomes part of the public record.
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What Is a Trust?A trust is a legal arrangement where you transfer ownership of your assets to the trust itself, managed by a trustee for the benefit of the people you choose. You can act as your own trustee while you’re alive and capable of managing your affairs.
A trust can take effect immediately once you fund it, meaning you retitle assets like your home or bank accounts into the trust’s name. Funding is the step where many people run into trouble, because a trust only protects what’s actually inside it.
Trusts come in different forms depending on your goals. Some are built to avoid probate, and others, like ours, are built specifically to protect your assets while qualifying for Medicaid.
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How a Will and a Trust Work Together in Your Estate Plan
For most people in Georgia, a comprehensive estate plan includes both a will and a trust because each serves a different purpose. A trust is designed to own and manage the majority of your assets, while a will acts as a safety net for anything that isn’t transferred into the trust.
This combination provides added protection because life doesn’t always go as planned. For example, you may purchase a new asset shortly before your death and never have the opportunity to transfer it into your trust. Your will directs how that asset should be handled.
What Is the Absolute Protection Trust™?
The Absolute Protection Trust™ combines the asset protection strength of an irrevocable trust with a level of flexibility that traditional irrevocable trusts don’t offer. Most irrevocable trusts lock you in permanently, but ours is built to adapt as your life changes.
That flexibility comes from a feature we call the Trust Protector™. It allows changes to be made to the trust after it’s created and lets you remove or replace a trustee if they’re no longer the right fit, something a standard irrevocable trust generally won’t permit.
You’re also assigned a Personal Planning Team, led by the same attorney from start to finish, along with hands-on support during Trust Activation, the process of properly transferring your assets into the trust.
Common Mistakes People Make With Wills and Trusts
Estate planning documents must follow Georgia Medicaid rules, probate law, and tax laws, which can be complicated. If you make a mistake in how you write or fund these documents, you could lose the protection you expected.
Some of the most common mistakes include:
- Creating a trust but never funding it, meaning the assets never actually get retitled into the trust’s name
- Waiting too long to set up a trust for Medicaid planning purposes; Georgia enforces a five-year look-back period
- Assuming a will by itself covers every scenario, without realizing it leaves assets exposed to probate and long-term care spend-down requirements that only a trust can address
An elder law attorney can review your full financial picture and recommend the combination of documents that fits your goals.
Get Help With Estate Planning in Georgia
The difference between a will and trust is that a will outlines your wishes for how your property should be distributed after your death. In contrast, a trust is a legal entity that holds ownership of your assets and allows a trustee to manage and distribute them.
For more than a decade, Nelson Elder Care Law has helped families manage complicated life decisions. Call today to schedule your free Legacy Planning Meeting to discuss wills, trusts, and other estate planning concerns.
