8 Suze Orman Tips on Wills and Trusts That’ll Save Your Family Stress

Most people know that creating a will is the easiest way to ensure their assets are divided correctly after death. But according to financial guru Suze Orman, having only a will in place isn’t as helpful as having both a will and a trust — and creating just one or the other can be a surprising financial mistake that makes life a little harder for your loved ones once you’ve passed away.

Below, we’ll walk you through Orman’s explanation of why you need both a will and a trust and highlight some of her other expert estate planning advice.

A will governs the disbursement of personal belongings, such as “art or personal effects,” Orman explains in an episode of her podcast, “Suze Orman's Women & Money (And Everyone Smart Enough To Listen).”

Meanwhile, a trust allows you to designate a trustee who ensures your assets are distributed correctly to your beneficiaries.

Wills are undoubtedly helpful but are subject to probate, the public process of reviewing and distributing assets. If a will isn’t set up correctly, someone might contest the distribution of assets, which could mean your intended beneficiaries don’t inherit everything you intended.

Setting up a trust lets you avoid probate and keep the distribution of assets more internal instead of making them public.

If you’re leaving behind property that you want your inheritors to share, a trust will give you more control over how that property is inherited compared to a will. Bequeathing property with a trust gives you greater control over exactly how you want your property to be inherited.

According to Orman, it’s essential to consider how legally structuring your property ownership affects asset distribution. A lawyer can help you understand property ownership options, but Orman says structuring ownership as tenants in common rather than joint tenancy will help prevent issues like accidental disinheritance.

As Orman reminds her listeners, “A lot of people think all they have to do is write on a piece of paper where they want everything to go,” but creating a legally valid will is simply “not that easy.”

Instead, for the courts to accept your will as legally binding, you need a written copy of the will you sign and date (usually by hand), then have two non-beneficiaries witness and sign the will. You also need to be “of sound mind,” which Orman says means “you understand the nature of what you’re writing.”

It’s crucial to destroy old versions of the will whenever you update your will. Otherwise, inheritors (or the courts) might argue about which version of the will is legally valid.

And don’t forget that officially updating your will is a legal process. Per Orman, “if you cross out something on your will and you write something else, it automatically invalidates [the will].” You need to go through the same process you did to create the will as you do to revise it.

It isn’t legally necessary to have your will notarized, and getting it notarized isn’t a substitute for legal requirements like having two witnesses and a testator sign your will. But as Orman says, even though most states don’t require you to notarize your will, doing so “makes it less likely to be contested.”

There are multiple types of trusts, and the right one for you depends on your personal wishes, needs, and financial situation. However, a revocable living trust is a valuable option for people who want to manage their assets — especially their property — while alive and ensure they’re allocated correctly once they die.

With a revocable living trust, you can manage assets and change their distribution whenever needed. Since the trust is revocable, you can change the terms of the trust or dissolve it at any time. Laws about trusts differ from state to state, so you’ll need to talk to a lawyer about what your state requires for individuals creating revocable trusts.

While you can create a will using free online templates, working with a lawyer is a safer option that helps ensure the document will stand up in court. You must also work with a lawyer to set up a trust. Creating a will can cost anything from $0 to a few hundred dollars, while establishing a trust can cost a few thousand dollars, depending on the complexity of your estate.

If you’re hoping to establish a trust in the future, it’s wise to start saving up for legal expenses now. Creating a will is more affordable — so if you’re short on funds, start there and then scale up to a trust.

Having both a will and trust in place is more than a way to make life easier for your loved ones as they cope with the stress of inheritance and asset division. It can also be a hidden sign of financial stability and a great way to prove that you’re fully aware of — and in control of — your current financial situation.

If you’re unsure how to start writing a will and setting up a trust, getting in touch with an estate planner is the perfect place to start.