Most people start estate planning with one question: do I need a will or a trust? The answer depends on what you own, where it is, who you want to receive it, and how much involvement you want the court to have after you’re gone.
Neither document is better in every case. A will is simpler and less expensive to prepare. A trust takes more work up front and can save your family time, cost and exposure later. Many of the families we work with end up using both.
What a will does
A will is a written set of instructions that takes effect when you die. It names the people or organizations who will receive your property, appoints a personal representative to carry out your wishes, and, for parents of minor children, nominates a guardian.
A will only controls property that is in your name alone at death. Accounts with a named beneficiary, such as life insurance and retirement plans, pass directly to that beneficiary. Property held jointly with a right of survivorship passes to the surviving owner.
- Who receives your property, and in what shares
- Who serves as personal representative of your estate
- Who will care for your minor children
- Specific gifts, such as family heirlooms or charitable bequests
What a trust does
A revocable living trust is an arrangement you create during your lifetime. You transfer property into the trust, usually serve as your own trustee, and keep full control. You can change or revoke it at any time.
When you die or become unable to manage your affairs, a successor trustee you have chosen steps in. That person manages or distributes the trust property according to your written terms, without waiting for a court appointment.
A trust can also hold property for a long time. You can stagger distributions to young adults, provide for a family member with special needs without affecting their benefits, or keep assets separate from a beneficiary’s marriage.
“A will tells the court what you want. A trust lets the people you trust carry it out.”
Probate and privacy
Property passing under a will generally goes through probate, the court process that validates the will, pays debts and transfers title. Probate is often manageable, but it takes months, involves filing fees, and creates a public record of what you owned and who received it.
Property that is properly titled in a trust does not go through probate. Your successor trustee can act as soon as needed, and the terms of the trust generally stay private. For families who own real estate in more than one state, a trust can also avoid a separate probate proceeding in each state.
A trust only works for property that has been transferred into it. We help clients retitle homes, accounts and other assets as part of every trust we prepare.
Cost and upkeep
A will costs less to prepare and requires little maintenance beyond periodic review. A trust involves more drafting and the work of funding it, and you’ll need to title new assets in the trust’s name as you acquire them.
The comparison changes once you account for what happens later. Probate costs, delays and court supervision fall on your family at a difficult time. For many households, the added cost of a trust today is less than the cost of probate tomorrow.
Using both together
Most trust-based plans include a short companion will, often called a pour-over will. It directs any property left outside the trust into it at death, and it is still where parents nominate guardians for minor children.
A complete plan usually also includes a durable power of attorney for finances and a health care directive, so the people you choose can act for you if you are unable to act for yourself.
Next steps
- List what you own and how each asset is titled today.
- Gather current beneficiary designations for insurance and retirement accounts.
- Think about who you would trust to manage your affairs and care for your children.
- Schedule a consultation so we can recommend the right structure for your family.
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.
