Estate planning is much more than just deciding who gets what after you are gone. It is about protecting your loved ones, reducing stress during difficult times, and making sure that your wishes are met. Two of the most common documents used in estate planning are what we call, wills and trusts. At first glance, they may seem similar. Both are used to pass assets on to a beneficiary of your choice. However, wills and trusts work in very different ways, and understanding the distinction is essential when deciding what best fits your situation.

Our blog today, will walk you through the details of wills and trusts, including how each works, their strengths and weaknesses, and when one might be preferable over the other. By the end we hope that you will have a clear understanding of how these tools can be used to build an estate plan that reflects your goals.

 

What Is a Will?

A will, also known as a last will and testament, is a legal document that explains how you want your assets to be distributed after your death. It allows you to name beneficiaries, appoint an executor to manage your estate, and designate guardians for your minor children. A will only takes effect once you pass away, meaning it has no authority during your lifetime. An example, we have is, if you or your partner were in an accident and became incapacitated, your will would not  have a role during that event. To cover medical decisions or financial matters during life, you would need additional documents such as a healthcare directive or a power of attorney.

Since a will must be submitted to probate court, the process would involve legal oversight to confirm that it is valid and that your wishes are followed. While probate can provide a layer of protection against fraud or disputes, it is often time consuming, costly, and public. Especially having your loved ones deal with this during a time of grief. Which would lead to developing additional stress.

Having a will provides a more clear instructions about how your property should be divided, it allows you to appoint guardians for your children, and it creates a formal legal record of your wishes. Yet, it does not protect you during incapacity, and it almost always requires probate.

 

What Is a Trust?

A trust is a legal arrangement that allows a person (that you choose), known as the grantor, to transfer assets to a trustee, who then manages those assets on behalf of beneficiaries. This is very different from a will, a trust can take effect immediately after it is created, and it can continue to manage your property not just after death but also during your lifetime. An example would be if you were in an accident and could not manage your affairs, your successor trustee could step in right away to handle your finances and carry out your wishes without court involvement.

The most common type of trust is called a revocable living trust. With this tool, you have control of your property while you are alive, but your chosen successor trustee will automatically take over if you pass away or become incapacitated. A  type of trust like this avoids probate and allows assets to be distributed more quickly and privately than having a will.

In addition, trusts can be created for specific purposes, like providing for a loved one with special needs, protecting assets from creditors, or offering potential tax advantages. In other words, a trust can be powerful, if utilized correctly, because it takes effect immediately, which would allow your assets to skip any probate process, and gives you the flexibility to design a plan that fits your unique circumstances.

 

Key Differences Between Wills and Trusts

Now, we know that both documents play a role in estate planning. Yet, they work in fundamentally different ways. A will takes effect only after death and it would most likely require involving probate court, while a trust is effective as soon as it is signed and funded, yet, most likely can avoid the court system entirely. Wills become public records once filed, but with a trust it can all remain private. Wills are also the only document that allow you to choose guardians for your children, while trusts provide more flexibility in managing how and when assets are distributed to them. Although in Utah, a separate Guardianship Designation is not required, several families do choose to use this document to make sure their choice is clear.  

 

The Advantages of a Will 

A will remains to be one of the simplest ways to plan your estate. Its biggest appeal is its simplicity because it is generally quick to create and does not cost much compared to other tools. This makes this type of document ideal for people who have modest assets or are just starting to think about planning ahead.

Another important feature of a will is that you are able to appoint guardians for minor children. If something happens to you, the court will not have to decide who raises your kids, or place them in the system. You would get the opportunity to make that choice, although, the court could still review your will,  to confirm that the guardians are a suitable option for your children.

Wills are very flexible. As long as you are mentally qualified, you can update your will to reflect changes in your life, such as marriage, divorce, the birth of a child, or new property. You can also specify gifts for charities or sentimental items, which allows your wishes to be clear and carefully considered.

In short, a will can be pretty simple, affordable, and give you control over your children and property while remaining easy to update as your life changes.

 

The Disadvantages of a Will 

Despite their usefulness, wills have several limitations. The most significant drawback is that they require probate. This court-supervised process validates the will and oversees asset distribution. While probate provides legal structure, it can be lengthy, costly, and stressful for your loved ones, sometimes taking months or even years depending on the estate’s complexity.

Another limitation is the lack of privacy. Once a will is filed with the court, it becomes part of the public record, allowing anyone to access details about your assets and beneficiaries.

Wills also provide no protection in the event of incapacity. If you become seriously ill or unable to manage your finances, your will does not authorize anyone to act on your behalf. In that case, your family may need to go to court to have a guardian or conservator appointed, which can be both time-consuming and stressful.

Finally, wills generally distribute assets in lump sums, offering little flexibility in how inheritances are managed or staged over time.

In reality, a will is effective for basic planning, but it has limitations regarding privacy, incapacity, and flexible distribution of assets.

The Advantages of a Trust 

Trusts provide a level of flexibility and control that wills cannot match. One of the most widely recognized benefits is that a trust allows you to avoid probate. Assets held in a trust pass directly to your beneficiaries without court involvement, which means distribution can happen faster and with fewer expenses.

Trusts also provide privacy, as they are not filed with the court. The details of your estate remain confidential, which is particularly valuable for families who want to keep their financial matters out of public view.

A trust is also effective for incapacity planning. If you cannot manage your assets due to illness or injury, a successor trustee can step in to manage your estate immediately, avoiding court intervention and providing continuity.

Trusts allow for customized distribution of assets. For example, you can specify that children only receive their inheritance at certain milestones, in stages, or under specific conditions. Certain types of trusts can also offer tax advantages or protect assets from creditors.

In short, trusts are powerful because they bypass probate, provide flexibility in distribution, allow for privacy, and offer protection during incapacity.

 

The Disadvantages of a Trust

While trusts are powerful, they are more complex and expensive to set up than wills. Drafting a trust requires careful planning and legal expertise, which makes the upfront cost higher.

Trusts also require ongoing attention. To be effective, assets must be properly funded, meaning that property, accounts, and investments need to be transferred into the trust’s name. If this step is missed, those assets may still go through probate, defeating one of the trust’s primary advantages.

It is important to remember that a trust does not fully replace a will. A pour-over will is still needed to address any assets not included in the trust and to name guardians for minor children.

In summary, a trust can provide advanced planning benefits, but it requires more time, money, and maintenance, and it does not completely eliminate the need for a will.

Do You Need Both a Will and a Trust?

For many families, the most effective estate plan combines both a will and a trust. A trust manages and distributes assets efficiently, while a will addresses guardianship for minor children and covers any property not transferred into the trust. Together, these documents create a comprehensive and secure plan that can protect your family and simplify the transfer of your estate.

Using both tools makes sure that your estate is fully protected, your family is provided for, and your wishes are carried out accurately. While it might seem redundant at first, the combination offers flexibility and peace of mind, allowing your loved ones to avoid legal complications and delays. For example, a trust can transfer assets privately and quickly, while a will acts as a safety net for anything left out of the trust or to designate guardians for children.

When a Will Might Be Enough

Not everyone needs a trust right away. A simple will can be sufficient if you have modest assets, are just starting your career, or do not own property that requires complex management. A will allows you to name heirs, appoint guardians, and legally document your wishes at a lower cost than creating a trust.

A will may also be appropriate if you do not mind going through probate, or if your family circumstances are straightforward and do not require staged or conditional distributions. For instance, a single adult with a small savings account and no children may only need a will to make sure their assets are distributed according to their wishes. Even in these simpler cases, a will gives a clear legal framework and prevents state law from making decisions for you.

 

When a Trust Is the Better Choice

A trust is usually the better option for more complex estates. If you own property in multiple states, have significant assets, or want to keep your affairs private, a trust allows you to bypass probate and maintain confidentiality. Trusts also allow you to structure inheritances, provide for dependents with special needs, or stagger distributions over time. This can help protect minors or beneficiaries who may not yet be ready to manage large sums of money responsibly.

Trusts are also valuable for incapacity planning. If you become unable to manage your finances, a successor trustee can immediately step in to handle your estate without court involvement. This continuity is especially helpful for families who want to avoid delays, legal fees, or family disagreements during stressful times.

Ultimately, a trust is appropriate if you need privacy, control, flexibility, and protection for your loved ones. Even if your estate is moderate in size, a trust can prevent complications and give your family peace of mind.

 

Common Misconceptions About Wills and Trusts

Many people assume that trusts are only for the wealthy, but in reality, families of all income levels can benefit from a trust. Anyone who wants to avoid probate, provide clear instructions, or protect family members can gain value from having a trust in place.

Another common myth is that estate planning is a one-time task. Both wills and trusts should be reviewed regularly to reflect major life events such as marriage, divorce, the birth of children, or new property ownership. Failing to update documents can lead to unintended consequences, such as assets going to unintended beneficiaries or guardianship designations becoming outdated.

Some people also believe that family members can “figure things out” without formal documents. In reality, leaving decisions to the state can lead to conflicts, legal battles, and delays, which may be costly emotionally and financially. Creating a will or trust makes sure that your intentions are clear and legally enforceable.

A Practical Example

Consider two families. The first relies solely on a will, while the second uses a living trust. When the parent in the first family passes away, their estate must go through probate. This process can take nearly a year and cost thousands of dollars in fees, while also making the details of the estate public.

The second family, with a trust in place, transfers assets privately within weeks, with minimal costs and no court involvement. Both families planned ahead, but the results were dramatically different. This example highlights the practical benefits of a trust, especially in terms of speed, cost, privacy, and continuity of management.

How to Decide What You Need 

Deciding between a will and a trust begins with evaluating your assets, family situation, and goals. Ask yourself questions such as: Do you need to appoint guardians? How important is privacy? How quickly do you want your assets distributed? Are the costs of probate a concern?

Once you have answers, consulting an experienced estate planning attorney can help you design a plan that meets your family’s unique needs. They can guide you through legal requirements, explain how different tools work together, and make sure your plan reflects your wishes accurately. A thoughtful plan prevents confusion and minimizes stress for loved ones during difficult times.

Keeping Your Plan Current

Estate planning is not a set-it-and-forget-it task. You should review your documents regularly, especially after major life events like marriage, divorce, the birth of children, or significant changes in property or finances. Laws also change, so even if your personal circumstances remain stable, an update may be necessary to maintain validity and effectiveness.

Regularly revisiting your estate plan makes sure that it reflects your current wishes, protects your family, and takes advantage of legal strategies that may not have been available when your plan was first created. Think of it as a living document that evolves with your life.

Final Thoughts

The choice between a will and a trust is not about finding a universally “better” option, but about identifying what fits your needs. A will may be sufficient for a young person with limited assets, while a trust provides more comprehensive protection for families with significant property or complex situations.

In many cases, using both together creates the most complete solution, giving peace of mind that your family is protected, your wishes are respected, and future burdens are minimized. A will provides basic instructions, a trust adds flexibility and efficiency, and together they form the strongest possible estate plan.

This article is for general informational purposes only and should not be considered legal, tax, or financial advice. Please consult with a qualified professional about your specific situation before making any decisions regarding estate planning, taxes, or business matters.