Will vs. Trust: What Is the Difference?
A will and a revocable living trust can both be part of an estate plan, but they work differently. The right choice depends on the family, assets, real estate, privacy goals, incapacity planning, and how property should be managed.
A Will
- Directs probate assets at death
- Can nominate guardians for minor children
- Names a personal representative
- Does not avoid probate
A Revocable Trust
- Can hold and manage assets during life
- Can provide continuity during incapacity
- Can reduce reliance on probate for properly funded assets
- Can control how assets are managed for beneficiaries
- Can continue inherited assets in protected trusts for beneficiaries rather than requiring outright distributions
Important: Funding Matters
A trust only controls assets that are actually connected to the trust through title, assignment, beneficiary designation, or another appropriate method.
A trust can also continue after death for children or other beneficiaries. When designed for that purpose, continuing trusts may provide meaningful protection from a beneficiary’s divorce, lawsuits, creditors, or bankruptcy that may be lost if the inheritance is distributed outright.
