Wills or Trusts? Choosing the Right Tool in Maine

People ask us this a lot: “Do I need a will or a trust?” The honest answer is that it depends on what you own, who you’re leaving it to, and how much you want to keep out of probate. Here’s how to think about it.

What a will does

A will is the basic building block. It says who gets your property, names a Personal Representative (an executor) to handle things, and, if you have young kids, names a guardian for them. That last part alone is reason enough for any parent to have one.

A will goes through probate. That means the Personal Representative files it with the probate court, and the court oversees the process of paying debts and distributing what’s left. In Maine, for most families, probate is manageable. It’s mostly paperwork, and it’s often handled informally.

What a trust does

A revocable living trust holds your property while you’re alive. You’re usually the trustee, so you stay in control. When you die, a successor trustee you’ve chosen takes over and distributes the property according to the trust’s terms, without going through probate.

Trusts are especially useful when:

• You own real estate in more than one state, which would otherwise mean a second probate
• You want to leave money to someone over time instead of all at once
• A beneficiary has special needs, struggles with money, or is very young
• You want more privacy, since probate filings are public
• You own a camp or cottage several family members will share

The catch with trusts

A trust only works on property that’s actually put into it. If you sign a trust but never retitle your house into the trust’s name, the house still goes through probate. Trusts also take more work to set up than a will.

That’s why most people who have a trust also have a simple “pour-over” will, which catches anything left outside the trust.

Things that skip both

Some assets pass outside both a will and a trust:

• Retirement accounts and life insurance with named beneficiaries
• Bank accounts set up as payable-on-death
• Property owned jointly with right of survivorship

These are often the largest assets a family has. If your beneficiary forms are out of date, they can undo the rest of your plan. We review them as part of every estate plan.

So which one?

For many Bangor-area families with a house, some savings, and kids, a well-drafted will plus up-to-date beneficiary forms is enough. If you own property in another state, have a blended family, or want to control how and when money is given out, a trust is often worth it.

Talk it through with us

Gray & Palmer has helped families in Bangor, Brewer, and the surrounding towns plan their estates for decades. We’ll ask about your family and your property, then recommend what makes sense. Sometimes that’s simpler than people expect.

Call (207) 945-5502, or read more about our wills, trusts, and probate work.