Wills vs Trusts

Contact Us for Help with Wills and Trusts in Lehigh, Northampton, Bucks, Montgomery, Philadelphia, Chester, Delaware, Lancaster, Lebanon, Dauphin, Schuylkill, York, Carbon, Luzerne, Monroe, Columbia and Northumberland counties.

Estate planning is important for everyone – young or old – who has any assets (a home, bank account, IRA, etc.) and wants to …

Determine who receives their assets when they have passed away
Designate who will make financial and medical decisions on their behalf
Specify what life-sustaining medical treatment they want if there is no realistic hope of recovering
Make it a little easier for grieving surviving family members when they die
Have peace of mind

Failing to do so can lead to unnecessary legal fees and unwanted negative consequences, such as a court deciding who will care for your minor children, your assets being distributed according to state law (rather than your own wishes), your beneficiaries paying higher taxes, and more.

Every estate plan is different based on your assets and your needs, but all should include at least a will, a durable power of attorney, and a healthcare power of attorney (living will). Most people are relatively familiar with these documents. However, another estate planning document – a trust – is not as familiar to most but may be suitable for some. A trust is similar to but not the same as a will.

What is a Will?

“A will, also known as a last will and testament, is a legally enforceable declaration of how a person wants their property and assets distributed after death,” Investopedia explains. “In a will, a person can also recommend a guardian for their minor children and make provisions for any surviving pets.”

Most wills go through the probate process, which can take several weeks to several years. “Probate is the court-supervised process of administering your estate and transferring your property at death pursuant to the terms of your will,” the American Bar Association (ABA) explains.

At present, only estates exceeding $12.92 million are subject to a federal estate tax. However, most beneficiaries other than spouses in Pennsylvania will pay an inheritance tax on many assets bequeathed to them in a will.

Wills are relatively simple, although it’s always best to consult an experienced estate attorney to ensure all of your individual needs are addressed and your will complies with state laws.

What is a Living Trust?

A living trust is a legal document that allows you to transfer ownership of your assets into a trust account and assign management of those assets to a trustee (an individual or entity) on behalf of your beneficiaries.

One of the most significant advantages of a living trust (over a will) is that it avoids probate, which means assets are available to your beneficiaries immediately based on your specifications.

There are two types of living trusts - revocable and irrevocable. A revocable living trust allows you to maintain control over the trust and make changes, such as adding or removing assets, changing beneficiaries, or revoking the trust. With a revocable trust, your beneficiaries will be subject to estate taxes.

An irrevocable living trust cannot be changed (unless all beneficiaries agree) or revoked, giving you significantly less control. However, an irrevocable living trust has several advantages:

Protects your assets from creditors
Minimizes estate taxes
Provides privacy because details of the trust are not public record

Which is Better – a Will or a Trust?

For many, a will, which is simpler and less expensive than a living trust, is sufficient. However, a living trust may be beneficial for someone with a more complex estate (multiple properties or sizeable assets) or who wants to avoid probate, minimize estate taxes, protect assets from creditors, or keep their information private.

A person can have both a will and a living trust.

Estate Planning and Trust Administration

Most people do not want to think about what will happen when they pass away, but it will happen to everyone sooner or later. Having an estate plan will make things a little easier for your family during an already difficult time and ensure that your wishes are followed if you were to become incapacitated.

Contact Our Estate Planning Attorneys to Learn More

One of the experienced Estate Planning Attorneys at Bingaman Hess can help determine what estate planning documents are suitable for your needs, minimize estate taxes, and more. Call today at 610.374.8377 or find us online.

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Business Succession Planning

By Mahlon Boyer • May 30, 2026

Business succession planning is an important process that helps business owners prepare for the upcoming transfer of ownership and leadership. Whether the transition involves passing the company to family members, selling to business partners or transferring ownership to outside buyers, having a clear succession plan helps reduce uncertainty and protect the long-term security of the business. A careful plan can also minimize disputes, preserve business value and ensure continuity in periods of change. Planning for Business Transfer The first step in business succession planning is identifying how the business will be transferred and who will assume control. Business owners should evaluate their long-term goals, retirement plans, and the financial needs of both the company and their family members. Some owners choose to pass the business on to children or relatives who are already involved in operations. Others may transfer ownership to key employees, business partners or third party buyers. Each option has different legal, operational and financial consequences. A successful transition often takes years of preparation. Potential successors may need leadership training, operational experience and gradual increases in responsibility to ensure they are ready to effectively manage the business. Good communication with family members, partners and stakeholders is also important to avoid misinterpretations and conflict. Business owners should work with legal and financial professionals to create formal succession documents, update corporate records, and establish a realistic timeline for the transfer process. Use of Buy-Sell Agreements Buy-sell agreements are an essential part of many succession plans. These legally binding agreements specify what happens to the interest of a business owner if certain events occur, such as retirement, disability, death or voluntary departure from the company. A buy-sell agreement typically defines who may buy the shares of the departing owner, how the business interest will be valued and the terms of payment. This structure helps maintain stability and prevents ownership disputes that could disrupt operations. For businesses with multiple owners, buy-sell agreements provide understanding and protections for all parties involved. They can prevent unwanted external ownership and ensure that remaining owners retain control of the company. Funding mechanisms are also important. Many businesses use life insurance policies to fund buyouts in the event of an owner's death. This allows surviving owners or family members to complete the transfer without putting financial hardship on the business. Tax Considerations Tax planning is an important part of business succession planning. If the transfer of ownership is not well planned, the business owner and successor will face a substantial tax liability. Depending on how the transfer takes place, the owners may face capital gains, estate, or gift taxes. With good planning, these tax burdens can be reduced with trusts, step-by-step ownership transfers, family partnerships, or changing the type of business entity. Another important factor is valuation. A proper valuation of a business is important for determining tax liability and ensuring that everyone involved in the transfer is treated fairly. Business owners should regularly review their succession plans with accountants, tax advisors, and attorneys, as tax laws are often changing. Regular updates keep the plan in line with changing legislation and the business’s needs. Let Us Help You Navigate the Essentials of Business Succession Planning Don’t wait! Talk to one of the experienced estate planning attorneys at Bingaman Hess today at 610.374.8377 or contact us online. This article is for informational purposes only and does not constitute legal advice. No one may rely on this information without consulting an attorney. Anyone who attempts to use this information without attorney consultation does so at their own risk. Bingaman Hess is not and shall never be responsible for anyone who uses this information. It is not legal advice.