Creating an estate plan is a crucial step you can take to protect your family and ensure your wishes are honored. Two of the most common estate planning tools are wills and revocable trust agreements. While they share similarities, they serve distinct purposes, and understanding their differences can help you decide which option—or combination—best meets your needs.
What is a Will?
A will is a legal document that directs how your property is distributed after death. It also allows you to name guardians for minor children, a critical safeguard for families. Without a valid will, the probate court follows state law to determine heirs, appoint guardians and assign an executor.
Because a will does not take effect until death, you can amend or revoke it at any point during your lifetime. After death, your personal representative must present the will to the probate court, which oversees the payment of debts, handles disputes and grants authority to distribute assets. This process is public and can take months to complete.
What is a Revocable Trust Agreement?
A trust is a legal arrangement that holds and manages property for beneficiaries. Unlike a will, which only takes effect after death, a trust can be designed to operate during your life, in the event of incapacity and after death.
Trusts can be particularly useful if you:
- Want to avoid probate and keep asset distribution private
- Own property in multiple states (avoids multiple probate proceedings)
- Need a plan for incapacity, ensuring assets are managed if you cannot make decisions
Wills vs. Trusts at a Glance
When deciding to use a will, trust, or both, it helps to see how they compare side by side. The table below highlights key features and differences that could affect your estate planning choices.
Feature | Will | Trust |
Probate | Requires probate | Provides the opportunity to avoid probate |
When Effective | After death | Life, incapacity, and death |
Privacy | Public record | Private |
Flexibility | Amendable until incapacity death | Amendable until incapacity or death |
Planning Ahead: Next Steps
Every family’s estate planning needs are different, and the distinctions between wills and trusts can be more complex than they appear. Choosing the right approach requires careful consideration of your goals, your assets and the laws that apply in your state. Without professional guidance, it’s easy to overlook important details—such as how probate rules vary, which assets should or should not be placed in a trust or how to coordinate tax strategies across both documents.
Our advisors help you navigate these complexities to design a customized estate and trust plan that protects your legacy. We work with you to avoid common pitfalls, safeguard your family and ensure your wishes are carried out with clarity and confidence. Contact us today to start building a plan tailored to your unique situation.