Trust vs Will: Which One Is Right for You?

As a homeowner in Mississippi, you need to protect your largest investment. I've seen too many families struggle after losing a loved one without proper estate planning in place. Today, I want to break down the differences between trusts and wills so you can make the best choice for your family's future.

The Basics: What You Need to Know First

When clients buy their first home through my agency, I always encourage them to think about estate planning. Your home represents both financial security and a personal legacy. Planning now saves your loved ones from headaches later.

I recently helped Sarah, a first-time homebuyer in Brandon, purchase her dream starter home. During our closing celebration, she asked me, "Detrice, now that I own a home, do I need a will or something?" This question comes up often, and the answer isn't always straightforward.

Wills and trusts serve different purposes, and many Mississippi homeowners need both. Let me walk you through what each one does and how they might fit into your situation.

Wills: The Foundation of Estate Planning

A will represents your basic instructions for distributing property after death. Think of it as your final set of wishes that takes effect only after you're gone.

Here's why a will matters for Mississippi homeowners:

• Names guardians for minor children - As a parent, this might be the most important decision you'll make
• Specifies who receives your property
• Designates an executor to manage your estate
• Creates a legal document that tells the courts your wishes

I remember working with Michael and Jennifer from Madison County who purchased their first home while expecting twins. We discussed how a will would protect both their new property investment and provide for their children's future care.

However, wills have limitations. Most significantly, they must go through probate—the court process that validates your will and oversees asset distribution. In Mississippi, probate can take 6-9 months even for simple estates. During this time, your assets remain frozen, and the process becomes public record.

Trusts: Privacy and Control Beyond Death

A trust offers more comprehensive protection and privacy than a will alone. I explain trusts to my clients as creating a legal entity that owns your property while you maintain control.

The benefits of a trust for Mississippi homeowners include:

• Avoids probate completely, allowing immediate asset transfer
• Keeps your financial matters private (unlike wills, which become public record)
• Provides protection if you become incapacitated
• Offers flexibility and control even after death
• Can potentially reduce estate taxes for larger estates

Trusts prove especially valuable for homeowners in areas like Rankin County, where property values have increased significantly over the past decade. If your home and other assets total more than $100,000, a trust could save your heirs thousands in probate costs and attorney fees.

Cost Considerations: The Investment in Your Legacy

Let's talk money. Estate planning requires upfront investment but saves substantially more in the long run.

In central Mississippi, a basic will typically costs $300-$800 depending on complexity. A trust-based plan runs $1,500-$3,000 for most families. While the difference seems significant, consider the costs your estate will incur without proper planning:

• Probate expenses average 3-7% of your estate's total value
• Attorney fees during probate often exceed $5,000 for even modest estates
• Potential family conflicts and delays cost both emotionally and financially

I advise my first-time homebuyers in Hinds, Rankin, and Madison counties to start with at least a basic will, then upgrade to a trust when their assets and family situation grow more complex.

The Mississippi Perspective: Local Considerations

Our state has specific laws that affect your estate planning decisions. Mississippi does not use the Uniform Probate Code that many other states follow, making our probate process potentially more cumbersome.

Additionally, Mississippi homeowners should know:

• We're a common law property state, not community property
• Our homestead exemption laws provide some creditor protection
• Mississippi has no state estate tax, but federal estate taxes may apply to larger estates

When working with clients in Brandon and the surrounding areas, I stress the importance of consulting with a local attorney who understands these nuances. Your estate plan should reflect both your personal wishes and our state's specific legal framework.

Beyond Real Estate: Comprehensive Planning

While my expertise lies in real estate, I've seen how property fits into the bigger picture of wealth management. Your home likely represents your largest asset, but effective estate planning addresses all aspects of your financial life.

Consider these additional planning tools:

• Power of attorney for financial and healthcare decisions
• Living will/advance healthcare directive
• Beneficiary designations for retirement accounts and life insurance
• Digital asset instructions for online accounts and information

The banking professional in Jackson I regularly partner with tells me that fewer than 30% of Mississippi homeowners have updated beneficiary designations on their accounts—a simple step that can prevent major complications.

Making Your Decision: Will, Trust, or Both?

So which option makes more sense for you? Here's my practical advice based on helping hundreds of families throughout central Mississippi:

A Will Makes Sense If:

• You're a first-time homebuyer with modest assets
• You need to name guardians for minor children
• Your estate is relatively simple
• Cost represents a significant concern

A Trust Makes Sense If:

• You own property in Brandon or the surrounding high-value areas
• Privacy concerns matter to you
• You want to avoid probate completely
• You have specific instructions for asset distribution
• You own a business or complex investments

Many of my clients eventually implement both: a trust for their major assets and a will as a backup for anything not placed in the trust.

Taking Action: Next Steps

Estate planning doesn't need to feel overwhelming. Start with these simple steps:

1.    Inventory your assets, including your home and other properties

2.    Consider who should receive these assets

3.    For parents, decide on guardians for minor children

4.    Consult with a qualified attorney in Rankin County or your local area

5.    Review your plan every 3-5 years or after major life events

Remember, the best estate plan aligns with your specific situation. As your local real estate expert, I'm happy to recommend trusted legal professionals who can help you protect your home and other assets.

Have questions about how your real estate decisions affect your long-term financial planning? Reach out anytime—I'm here to help you build not just a house, but a legacy.