Will vs Trust
How They Differ and Why Both Are Often Used
When planning for the future, wills and trusts are two of the most commonly discussed estate planning tools. While they are sometimes confused or used interchangeably, they serve different roles and are designed to address different planning needs.
Understanding how each works can help clarify which options may be appropriate for your situation.
What Is a Will
A will is a legal document that outlines how your assets should be distributed after your death. It allows you to name beneficiaries, designate an executor to manage the estate, and appoint guardians for minor children.
A will only becomes effective upon death and must go through probate, a court supervised process that validates the document and oversees the distribution of assets. Probate timelines and costs vary by state and by the complexity of the estate, and the process becomes part of the public record.
What Is a Trust
A trust is a legal arrangement in which assets are held and managed for the benefit of designated beneficiaries. The person who creates the trust transfers ownership of assets into it, and a trustee is responsible for managing those assets according to the terms of the trust.
Many trusts are established during a person’s lifetime and can begin functioning immediately. When properly funded, trust assets generally avoid probate and can be distributed privately. Trusts also allow for more detailed control over when and how beneficiaries receive assets.
Key Differences Between Wills and Trusts
While both tools are used to pass assets to beneficiaries, they operate differently.
Wills take effect only after death, while trusts can function during life and after death.
Assets governed by a will typically pass through probate, while trust assets generally do not.
Wills become public record through probate, while trusts remain private.
Wills allow you to name guardians for minor children, while trusts do not.
Trusts provide greater flexibility in managing distributions over time.
Do You Need a Will, a Trust, or Both
A will may be sufficient for individuals with simpler estates who primarily need to name beneficiaries and guardians. Trusts may be beneficial for those who want to avoid probate, maintain privacy, or provide structured distributions to beneficiaries.
In many cases, estate plans include both. A common approach is to use a living trust to hold and manage assets, paired with a pour over will that directs any remaining assets into the trust at death. The will also serves to name guardians for minor children.
The Bottom Line
Wills and trusts are not competing tools. They are designed to solve different planning challenges and are often most effective when used together. The right structure depends on your goals, your assets, and your family situation.
Careful planning can help provide clarity, reduce administrative burdens, and ensure your wishes are carried out as intended.
