Living trusts today are the standard vehicle for building an estate plan and transferring assets to loved ones at death, as assets held by a living trust always avoid the probate process. A last will and testament is a legal document that outlines your wishes at death; assets distributed through a will requires the filing of the document with the probate court.
Wills vs. Trusts: Understanding the Essentials of Estate Planning
When creating an estate plan, you’ve likely heard the terms will and trust. Both are powerful tools designed to ensure your assets are passed on according to your wishes—but they work in different ways and serve unique purposes. Knowing the difference can help you make informed decisions for your future and your loved ones.
What Is a Will?
A will is a legal document that outlines how your property and possessions should be distributed after your death. With a will, you can:
- Name beneficiaries for your assets
- Appoint an executor to manage your estate
- Designate guardians for minor children
- Outline your wishes for funeral and burial arrangements
While wills are relatively simple to draft, they must go through probate—a court-supervised process that can be time-consuming and costly.
What Is a Trust?
A trust is a legal arrangement where one party (a trustee) holds and manages assets for the benefit of another (a beneficiary). Unlike a will, a trust becomes effective as soon as it is created and funded.
A revocable living trust—one of the most common types—offers several advantages:
- Avoids the probate process
- Provides greater privacy, since it doesn’t become public record
- Lets you retain control of your assets during your lifetime
- Prepares for incapacity by naming a successor trustee to manage your affairs if needed
- Allows for specific distribution conditions, such as delaying inheritance until a beneficiary reaches a certain age
Key Differences Between Wills and Trusts
Feature | Will | Trust |
Goes Through Probate | Yes | No |
Effective | After death | Immediately upon creation |
Privacy | Public record | Private |
Incapacity Planning | No | Yes |
Should You Have Both?
In many cases, the best approach is to include both a will and a trust in your estate plan. A will ensures no asset goes unaccounted for, while a trust can streamline asset distribution, maintain privacy, and help avoid probate.
By understanding how wills and trusts complement each other, you can create a well-rounded estate plan that protects your legacy and supports the people who matter most.
These legal topics are provided to you by the President of QMC, Mark Easley. While QMC does not engage in the practice of law, Mr. Easley has practiced estate planning and elder law for over 30 years and is currently the principal at the Elder and Estate Planning Law Firm of St. Louis.