Will vs Trust: Key Differences You Need to Know

Only 33% of American adults have a will or an estate plan, according to a 2023 caring.com survey. That means most people are leaving major decisions about their money, property, and even their children up to the courts.

Understanding the difference between a will and a trust can help you make smart decisions about your future and protect your loved ones. In this guide, we break down the key differences between a will vs trust in simple terms so you know what’s best for your needs.

What Is a Will?

A will is a legal document that explains how you want your property and belongings to be given out after you die. It can also name a guardian for your children if they are under 18.

Here’s what a will typically includes:

• Who gets your money and things
  
  
• Who will take care of your children
  
  
• Who is in charge of carrying out your wishes (this person is called the executor)
  
  
• Instructions for any debts or funeral plans
  
  

Wills go through probate, which is a court process to make sure everything is legal. This can take a few months or even longer depending on where you live.

What Is a Trust?

A trust is another way to manage your assets, but it can take effect while you're still alive or after you die. A trust holds your money, property, or valuables for someone else (called the beneficiary) and is managed by a person you choose (called the trustee).

There are different types of trusts, but the most common is a revocable living trust. This type lets you stay in control of your property while you're alive, and lets the trustee take over after your death.

Will vs Trust: Key Differences

Let’s compare a will vs trust by looking at some of the most important factors:

Will Pros and Cons

Pros:

• Simple and easy to create.
  
  
• Cost-effective for small estates.
  
  
• Can name guardians for your children.
  
  

Cons:

• Goes through probate (which can be long and expensive).
  
  
• Becomes public record.
  
  
• Doesn’t help if you become mentally or physically unable to manage your affairs.
  
  

Trust Pros and Cons

Pros:

• Avoids probate court.
  
  
• Stays private.
  
  
• Works while you’re alive and after death.
  
  
• Helps manage your money if you become sick or disabled.
  
  

Cons:

• Takes more time and money to set up.
  
  
• You must move assets into the trust (like changing property titles).
  
  
• Doesn’t name guardians for children.
  
  

When Should You Choose a Will?

A will might be the right choice for you if:

• You have a smaller estate (not a lot of money or property).
  
  
• You don’t need complex planning.
  
  
• You want a simple way to name guardians for your children.
  
  

A will is often a good starting point, especially for younger adults or those without large assets.

When Should You Choose a Trust?

A trust might be better if:

• You want to avoid probate.
  
  
• You have a larger estate or own property in more than one state.
  
  
• You want to protect your assets from creditors or lawsuits.
  
  
• You want someone to manage your finances if you can’t do it yourself.
  
  

A trust can offer more control and privacy, which many families prefer.

Can You Have Both a Will and a Trust?

Yes! In fact, many people have both.

This is called a pour-over will, which works with your trust. It makes sure any assets not already in your trust when you die are moved into it. That way, nothing is left out.

Even if you have a trust, you still need a will to:

• Name guardians for your minor children.
  
  
• Take care of anything you forgot to move into the trust.
  
  
• Handle personal wishes not covered by the trust.
  
  

How Do You Set Up a Will or Trust?

Here are some general steps to help you get started:

For a Will:

1. List your assets (money, house, car, jewelry, etc.).
   
   
2. Choose who gets what.
   
   
3. Pick a guardian for your kids (if needed).
   
   
4. Name an executor (person who handles your will).
   
   
5. Sign the will with witnesses (requirements vary by state).
   
   

For a Trust:

1. Choose what type of trust you want (like a revocable living trust).
   
   
2. Pick a trustee and list your beneficiaries.
   
   
3. Transfer your assets into the trust (titles, bank accounts, etc.).
   
   
4. Sign the trust document.
   
   
5. Keep it updated as your life changes.
   
   

Will vs Trust: What’s Right for You?

Choosing between a will vs trust depends on your needs. Here are some quick questions to ask yourself:

• Do you want to avoid court? → Choose a trust.
  
  
• Do you have minor children? → You need a will.
  
  
• Do you have property in more than one state? → A trust can help.
  
  
• Is your estate small and simple? → A will may be enough.
  
  

Talking to an experienced estate planning attorney is the best way to find what works for you.

Final Thoughts

Many people put off creating a will or trust because they think it's only for the wealthy. But that’s not true. Everyone should have a plan. Whether you choose a will, a trust, or both, making these decisions now will give your family peace of mind in the future.

Ready to protect your legacy? Schedule your consultation with Doane & Doane today.

FAQs: Will vs Trust