'We have no debt and own our primary home, a vacation home, as well as my mother's home in another state'

"We're looking to get one in place sooner rather than later, even if it's just an online will." (Photo subjects are models.)

Dear Quentin,

I'm looking for general information regarding wills versus trusts. Of course, we plan to meet with an attorney, but I thought I'd come here first. My husband, 56, and I, 52, have been married for 26 years and have no children.

We have no debt and own our primary home and a vacation home, as well as my mother's home in another state. She lives there at no cost other than paying for the utilities. We purchased it so she could afford to live there for as long as she is able.

The home is in my name with a beneficiary deed to my husband in case something happens to me first. We also own a marina slip near our primary residence. Other assets include two cars, two boats and three recreational vehicles.

We also have approximately $2 million in 401(k)s and IRAs. We do not have a will. We're looking to get one in place sooner rather than later, even if it's just an online will, until we complete something more comprehensive.

What are the pros and cons of a will versus a trust? Other than avoiding probate, what benefits would a trust provide for a couple in our situation? Many thanks for your help. We are keen to get this sorted once and for all.

The Wife

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You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

A trust does a lot more than just avoid probate, which is a public process.

Dear Wife,

You need to tie up a few loose ends, for sure. Heaven forbid, should you and your husband predecease your mother, what happens to the house she lives in? Without a will, both sets of parents would likely be your legal heirs if you both passed away at the same time, so it would make sense to give your mother a life estate in that house.

You also have a lot of assets - property and retirement funds - that should have listed beneficiaries and transfer-on-death deeds. This will help reduce the size of your estate that goes through probate. Making a will also enables you to leave money to friends, other family members and your favorite charitable causes. You have a lot of assets to distribute.

Your $2 million in 401(k)s and IRAs deserves close attention. Whoever is named as beneficiary on the account itself inherits them, so make sure that each account currently names the other spouse as primary beneficiary. This allows the surviving spouse to roll the funds into their own IRA, a valuable tax benefit only available to spouses. List a contingent beneficiary, just in case.

Your $2 million in 401(k)s and IRAs deserves close attention.

Who will act as your executor? A friend? Your lawyer? An independent third party? This is another important consideration. If you died today without a will, state intestacy laws would determine who inherits your estate (any living parents or, if they predeceased you, siblings). Given that you have no children, the surviving spouse would almost certainly inherit most or all marital assets.

Discuss the merits of a revocable living trust with your attorney. It will be more work and money than a will. However, it does a lot more than just avoid probate, which is a public process. A trust can also provide continuity if one or both of you becomes incapacitated, allowing the successor trustee to manage trust assets without the need for court intervention.

A revocable living trust is worth considering, given that you own real estate in another state. A trust can help your estate avoid ancillary probate in the state where your mother's home is located. A trust, if you so specified it, would allow that property to pass directly to your mom without a separate probate and/or permit her to live there for the remainder of her life.

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Power of attorney and healthcare directive

Another topic of discussion for your attorney: a durable power of attorney, a legal power that remains in effect after the principal becomes incapacitated, allowing them to access their client's bank account. (Serving as an authorized agent or co-signer differs greatly from becoming a joint owner of the account and its funds.)

Guardians, meanwhile, are appointed by the courts and have immense powers. Power of attorney is set up by the principal - that is, the person who expects to need care and help with decision making as they get older. As a safety measure, a person can set up a dual power of attorney - that is, appoint two or more people as agents.

An advanced healthcare directive, something else worth considering, informs your doctors what action you want them to take if or when you are unable to make decisions yourself. You may wish to list your husband as your healthcare proxy to carry out those decisions. You are a team, but serious medical issues can put pressure on a marriage.

You don't mention long-term care. Having a long-term-care policy, more than anything, can help alleviate the financial burden that lies ahead. Nursing-home costs can vary dramatically depending on the type of care, state and institution (up to $125,000 a year). You are now in your 50s, and, given that one of you may outlast the other by several years, it's worth looking into.

Finally, be wary of online wills. An online will opens you up to a wide margin for error. Make a will with the guidance of a trust and estate attorney. Holographic or handwritten wills are only legal in about half of the states in the U.S. Word of warning: It's not worth writing a will on the cheap or downloading one from the Internet. Too many things can go wrong.

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By emailing your questions to The Moneyist or posting your dilemmas on The Moneyist Facebook group, you agree to have them published anonymously on MarketWatch.

More columns from Quentin Fottrell:

I'm 67 with a $140,000 pension. Should I wait until 70 to claim Social Security so my wife gets more?

'I claimed Social Security at 62': At 76, I'm working at Walmart. Why do I still owe payroll taxes?

'I was shoveling sidewalks at 8 years old': I'm a 73-year-old boomer dad with two kids. Here's what I teach them about finance

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-Quentin Fottrell