TL;DR
Wills and trusts both play important roles in estate planning, but they serve different purposes. A will directs how your assets are distributed after you pass away and lets you name guardians for children. A trust manages assets during your life and after your death, offers privacy, and helps avoid probate. The right choice depends on your goals, your family situation, and how complex your estate is.
A will? A trust? Both? It is one of the first questions people ask when they start thinking about estate planning, and it is also one of the most misunderstood. The truth is, these two tools do very different things, and most families benefit from having both.
Understanding these differences can give you clarity and help you choose a plan that truly protects your loved ones. A complete estate plan often uses both tools, each handling a different part of your affairs. Below, you will find a clear explanation of how wills and trusts work, along with their pros, cons, and when each one is the better fit.
What Is a Will?
A will is a legal document that states your wishes for how your property will be handled after your death. It outlines instructions for managing and distributing your estate after death, and it must follow state rules to be valid.
A will can:
- Distribute your personal and financial assets
- Name guardians for minor children
- Appoint an executor to handle your estate
- Outline personal wishes, including funeral preferences
However, a will must go through probate, which is a public court process. Probate is the legal procedure required to transfer a person’s property after they pass away.. This means the will becomes public record, and the court oversees the process.
What Is a Trust?
A trust is a legal arrangement that allows a trustee to manage assets for the benefit of one or more people. A revocable living trust is the most common type.
A trust can:
- Hold and manage property during your lifetime
- Transfer assets privately without probate
- Offer protection if you become incapacitated
- Allow detailed control over when and how assets are distributed
Unlike a will, a trust becomes active once it is created and funded. You must transfer assets into the trust for it to work.
A living trust can be changed during your lifetime and only becomes irrevocable after death or incapacity
Pros and Cons of Wills
Pros
- Simple and cost effective to create
- Ideal for basic estates
- Allows you to name guardians for children
- Lets you state personal wishes clearly
Cons
- Requires probate, which can be slow and costly
- Becomes public record
- Does not manage assets while you are alive
- Offers no incapacity protection
Pros and Cons of Trusts
Pros
- Avoids probate, saving time and maintaining privacy
- Manages your assets if you become incapacitated
- Allows detailed and controlled distributions
- Often preferable for blended families or larger estates
- Can reduce or avoid estate taxes when structured as an irrevocable trust
Cons
- Costs more to establish
- Requires funding, which means transferring assets into the trust
- More administrative upkeep
- Not always necessary for small or simple estates
When a Will Might Be Better
A will may be the best choice if:
- Your estate is small and straightforward
- You mainly need to name guardians for children
- You do not mind the probate process
- You do not need long term asset management
- You prefer the simplest and least expensive option
A will alone can be completely sufficient for many families.
When a Trust Might Be Better
A trust may be the better solution if:
- You want to avoid probate and keep your affairs private
- Your estate has multiple properties or assets in multiple states
- You want ongoing control of how beneficiaries receive funds
- You are part of a blended family with special distribution concerns
- You want protection in case you become incapacitated
- You want to streamline things for your loved ones
For many people, avoiding probate is the biggest benefit. Probate can take months or even years, depending on the complexity of the estate.
Can You Have Both?
Yes, and most people should. A trust handles major assets, property, and long term planning. A will covers everything else and serves as a safety net.
Even if you have a living trust, you still need a pour over will to catch any assets that were not transferred into the trust.
A complete estate plan usually includes:
- A living trust
- A pour over will
- Powers of attorney
- Advance health care directives
Together, these documents keep your wishes clear and protect your family.
FAQs
Q. What is the main difference in the will vs trust decision?
A will takes effect after your death and must go through probate. A trust works during your life and after your death and usually avoids probate.
Q. Do I still need a will if I have a trust?
Yes. A pour over will ensures that any assets not placed in the trust are still handled according to your wishes.
Q. Does a trust avoid probate entirely?
A properly funded trust avoids probate for the assets inside it. Anything not placed in the trust may still require probate.
Q. Can a trust be changed after it is created?
A revocable living trust can be changed or canceled during your lifetime as long as you have capacity.
Which Option Is Right for You?
Choosing between a will and a trust is not about which one is better. It is about which one meets your needs. Your family structure, property, financial goals, and concerns about privacy all play a role.If you are unsure whether a will, a trust, or both is right for your situation, we can help. Contact Randal P. Hannah, Attorney at Law, for guidance tailored to your family’s needs.
