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We all strive to be financially responsible, from paying bills on time to investing for retirement and being smart shoppers. Another way to exercise financial responsibility is to plan for your estate when you pass away. Did you know there is an option besides a will? A living trust may actually be a better option, depending on your financial portfolio and family situation.

A few differences between a living trust and a will include:

Purpose – A will outlines how your assets should be distributed after your death, where a living trust allows you to manage your assets and how they are distributed, both during your lifetime and after.

Probate—A will usually requires probate, a court-supervised process that can take time and incur costs. A living trust avoids probate, which allows faster asset distribution to beneficiaries and avoids extra costs.

Privacy – A will becomes a public document after probate, where a living trust remains private and does not become public record.

Incapacity – A will only takes effect after death and does not address the management of your assets if you become incapacitated. A living trust can include provisions for managing your assets if you become incapacitated without the need for a court-appointed guardian.

Flexibility – A will can be amended or revoked, but it only covers what happens after death. A living trust is more flexible, allowing for changes in asset management both during your life and after death.

In some situations, a living trust has advantages for your particular circumstances. Some of these include providing for minor children or special needs beneficiaries, avoiding probate to give more immediate access to beneficiaries that might need the assets, managing out-of-state property, and complex family dynamics. The privacy of a living trust keeps the courts out of your wishes for inheritance to minor children or beneficiaries with special needs. Avoiding probate speeds up the access to assets for your beneficiaries. If you have property in multiple states and don’t have a living trust, you would be subject to probate in each state, adding costs to your estate and time before the property can be distributed to heirs. With complex family dynamics, such as a second marriage or complicated family relationships, a living trust allows you to specify in greater detail with customized instructions how your assets should be managed and distributed.

A will can be sufficient and cost-effective for a simple estate with fewer assets and straightforward distribution of assets.

According to Nerdwallet, the cost of a will can range from $0 to $1,000, depending on the complexity and size of the estate and how it is created (DIY, online, via an attorney). The costs for a trust can be $160 to $600 for a simple online trust and around $3,000 and up for complex trusts.

There are many considerations when deciding whether a will or a living trust is your best option. What is important is to begin planning and contact a law professional to ensure you implement a will or trust to protect and pass down your hard-earned assets according to your wishes.