You’ve likely heard of Wills and Trusts when it comes to estate planning, but do you really understand what sets them apart? Both tools allow you to decide what happens to your assets after you pass, but they work in very different ways.
At MCV Law, we help individuals and families create estate plans that protect their loved ones, minimize court involvement, and reduce stress when it matters most. Here’s what you should know about the differences between Wills and Trusts, and how to decide what’s right for you.
What Is a Will?
A Will is a legal document that:
- Goes into effect only after you pass away
- Names a guardian for minor children or pets
- Appoints an executor to handle your estate
- Directs how your assets should be distributed
While Wills are relatively simple to create, they typically require probate—a court-supervised process that can be time-consuming, public, and costly.
If you only have a Will, your estate must pass through probate before your assets can be distributed. This can delay the process and increase the burden on your loved ones.
What Is a Trust?
A Trust is a legal arrangement that:
- Becomes effective immediately upon signing and funding
- Allows you to manage and control assets while you’re alive
- Can specify how and when assets are distributed after your death
- May help avoid probate entirely
Trusts offer more flexibility and privacy than Wills. For example, if you become incapacitated, a Trust can ensure your assets are still managed according to your wishes, without court intervention.
However, Trusts require more setup. To be effective, you must transfer assets into the Trust, making the Trust the legal owner. This extra step can seem complex, but it often results in a smoother and more private transfer of your estate.
Do You Need Both a Will and a Trust?
In many cases, the best estate plan includes both a Trust and a specialized Will, often called a Pour-Over Will. This type of Will acts as a safety net, directing any remaining assets you didn’t transfer into your Trust to be added to it upon your death.
This combination helps ensure that all your property is protected, whether it’s already inside the Trust or not, while still allowing you to name guardians, make funeral plans, and appoint an executor.
Key Differences at a Glance:
|
Feature |
Will |
Trust |
|
When it takes effect |
After death |
Upon signing & funding |
|
Requires probate? |
Usually yes |
Often avoids probate |
|
Manages assets during life? |
No |
Yes |
|
Private or public? |
Public record |
Private |
|
Names guardians? |
Yes |
No |
|
Handles incapacity? |
No |
Yes (with revocable trust) |
Which Is Right for You?
Choosing between a Will and a Trust depends on your specific needs, goals, and stage of life. A Will may be sufficient for some, while others may benefit from the additional protection and privacy of a Trust.
The best way to know for sure? Speak with an estate planning attorney who can help you craft a plan tailored to your family, finances, and future.
Ready to protect your family and your legacy? The Estate Planning attorneys at MCV Law are here to help guide you through the process with compassion and clarity. We can help ensure that your family’s future is protected.
Contact MCV Law today for a free consultation to discuss wills, trusts, and other estate planning options. A little planning now can save your family from confusion, conflict, and unnecessary costs later on.