What’s the Difference Between a Will and a Trust?

Wills and trusts are two important tools in your estate plan, both of which involve the management and distribution of your assets.

While they share some similar qualities, there are key differences between a will and a trust that affect how your property is handled. Understanding your options and consulting a professional estate planning attorney can help you with the arrangement of both of these legal tools. 

What Are Wills?

Your Last Will and Testament is a document that outlines your wishes for what will happen to your assets, property, and children in the case of your passing. A solid will can help to:

  • Determine who will be the guardian(s) of any children who are still minors

  • Appoint a person to manage your property and ensure that it is distributed properly 

  • State how you wish your property to be divided up among your loved ones

What Are Trusts?

A trust is a legal kind of arrangement in your estate plan that also expresses your wishes. It holds and manages your assets for the beneficiaries that you choose and outlines both how and when they are distributed.

There are two types of trusts:

  • Revocable trusts: These are more flexible, allowing you to change or cancel them.

  • Irrevocable trusts: Typically, these cannot be changed or canceled once created.

Key Similarities  

Trusts and wills both involve the appointing of a trusted person to help manage the legal process. For wills, this is known as an executor; for trusts, this is called a trustee. 

They both handle your assets and outline who will inherit your property, as well as how and when. Each must follow all state requirements.

Main Differences

Wills and trusts are different in these areas: guardianship, timing, incapacity planning, expenses, probate, and confidentiality. 

  • Guardianship: A will can name who will be the guardian(s) of any minor children, but a trust cannot outline guardianship. 

  • Timing: While trusts can generally be accessed as you wish, such as during your lifetime, wills can not be accessed until your passing. 

  • Incapacity planning: A trust can allow an appointed trustee to handle your affairs in the case of your sudden incapacitation. 

  • Expenses: Trusts often cost more money to arrange than wills do. 

  • Probate: Assets that are distributed according to a will usually have to go through the probate process, while trusts can help you avoid the process entirely. 

  • Confidentiality: Your will is public record during the probate process, making it harder to maintain privacy; trusts are confidential and tend to stay between you and your family. 

What Should You Choose?

Deciding between a will and a trust will depend on your personal circumstances, wishes, budget, and the size of your estate. 

People who have minor children or preferences for their end-of-life decisions might opt for a will, as well as those who are seeking a more cost-effective option.

A trust might be a better option for people who want to avoid the probate process and preserve their privacy. This is also a great option for people who wish for their beneficiaries to be able to access assets while they are still alive.

You might also find that both a will and a trust would be beneficial to you. Seeking professional assistance is a great way to weigh your options and make an informed decision.

About Estate Planning 

MKP Law offers estate planning services to help you ensure your wishes are met, your property is distributed how you want, and your loved ones are protected both during your lifetime and afterward. 

Although some people look at estate planning as something they will handle down the road, it is wise to plan early. Because unexpected circumstances may arise at any time, having a plan in place can put you at ease that your estate will be handled in the way that you want, no matter what. 

If you have been recently married or divorced, or if you have recently had or adopted children, it is wise to put together a plan. Additionally, if you have experienced any life changes, you might want to consider updating an existing estate plan. 

Our team can help you put together or revise an estate plan that best reflects what your goals are. Whether you want a will, a trust, or both as part of this plan, we’ll work with you to structure things in the way that makes sense for you and for the people you love. 

Frequently Asked Questions

Can trusts help avoid probate?

Yes, a properly structured trust can help you avoid the probate process. An estate planning attorney can help you with this.

Can wills help avoid probate?

No, a will cannot help you avoid probate; instead, it provides instructions for the court process.

Can I change my will?

Yes, you can update your will or create a new one. Sometimes, your wishes change over time, and you might want to update your will or start from scratch. 

Can assets in a trust avoid estate taxes?

It depends; revocable trusts will not reduce estate taxes, but irrevocable trusts can reduce them.

Help with Wills and Trusts from Local Estate Planning Attorneys

At MKP Law, we’re here to make the estate planning process smooth for our clients. We understand that these matters might feel overwhelming or complicated, which is why we’ll talk with you about your wishes and help you create a plan that best fits your needs.

Connect with our local estate planning attorneys today for more information.